- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch
Where Taxpayers and Advisers Meet
IHT/Disabled Persons Trust
One of my sons is disabled and I have set up a Disabled Persons Trust fund for him. Is any money left to him in my will, and specified as to be paid into that trust, exempt from IHT completely? Or must that money come out of what is left of my estate after IHT has been paid?
Re: IHT/Disabled Persons Trust
No, gifts made in your lifetime are potentially exempt transfers and become exempt if you survive for 7 years. (the advantage is that a gift to a "regular" discretionary trust is immediately chargeable).
Sums left to the trust under your will are taxable in the normal way - i.e. the sums are included in your estate when IHT is calculated.
A disabled trust also benefits from not suffering 10 yearly charges and exit charges, which are usually payable by discretionary trusts.
Sums left to the trust under your will are taxable in the normal way - i.e. the sums are included in your estate when IHT is calculated.
A disabled trust also benefits from not suffering 10 yearly charges and exit charges, which are usually payable by discretionary trusts.
Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”