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Where Taxpayers and Advisers Meet

Bare Trusts and IHT

Feedback
Posts:351
Joined:Thu Feb 23, 2012 10:26 am
Bare Trusts and IHT

Postby Feedback » Tue Jan 16, 2018 9:23 am

upon death, what happens to assets in a bare trust? Are they subject to IHT as if the assets were held by the settlor/beneficiary? I would have thought they would be treated as a PET although the transfer happened around 3 years ago so this latter point is not really relevant.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Bare Trusts and IHT

Postby AGoodman » Tue Jan 16, 2018 11:41 am

The tax system essentially ignores bare trusts so the assets are treated as owned by the beneficial owner.

If person A transferred an asset to person B to hold on bare trust for A, that is a nullity for tax. Nothing has happened. If A dies, the asset is still in their estate.

Feedback
Posts:351
Joined:Thu Feb 23, 2012 10:26 am

Re: Bare Trusts and IHT

Postby Feedback » Tue Jan 16, 2018 1:21 pm

Thanks for the confirmation


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