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Where Taxpayers and Advisers Meet

Best way to distribute to beneficiaries

Joined:Fri Dec 22, 2017 9:26 pm
Best way to distribute to beneficiaries

Postby jokerman » Mon Apr 05, 2021 5:04 pm

Hi - hoping somebody can guide me here....

We have a family settlement trust where a chunk of the assets qualified for BPR and therefore at the recent 10 year anniversary there was no 10 year charge due. All trust funds have been held since the outset and the IHT qualifying shares have been held for 10+years (some purchased 2 years ago with replacement property relief).

As a trustee I wish to distribute some of the funds - some is cash and others is BPR-qualifying shares in an IHT fund.

Does it matter (from a tax or simplicity point of view) whether the trust sells the BPR-qualifying investment and then distributes the cash, or should the trust transfer the shares and let the beneficiary sell? (Note that one beneficiary is a minor).

Am I right in thinking that no IHT or other charges will be payable because there was no 10 year charge last time?

Will I need to declare the distribution?

Thanks in advance.

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