IIP trust that becomes a DT after an initial term

[akw]

Hi, is there any expert who would be interested in proofreading the trust deed that was prepared for me? Would like a 2nd opinion.

[akw]

sadly, no one seems interested in my questions, but I will try again to see if I can get some participation.....First point of discussion: Unlike an accumulation and maintenance trust structure, where a DT is superseded by an IIP, my trust is the other way round. It is an IIP first for a set term and is superseded by a DT structure. According to CG36320, the press release states that "On the other hand the existence of a mere power of revocation or appointment, the exercise of which would determine the interest wholly or in part (but which, so long as it remains unexercised, does not affect the beneficiary's immediate entitlement to income) does not in the Board's view prevent the interest from being an interest in possession." During the initial term, the beneficiary's entitlement is immediate, and the power of appointment remains unexercised; it only becomes in force subsequently. I conclude that IIP taxation is applicable during the IIP term, and DT taxation becomes applicable during the subsequent DT structure. Second point of discussion: The settlor of the property will apply for S260 at entry. When the IIP structure is superseded by a DT structure, I assume it will bring the IIP to an end and there will be a deemed transfer (IHTM04084). Whether this deemed transfer constitutes a chargeable event under section 52 (https://www.legislation.gov.uk/ukpga/1984/51/section/52) depends on who will be the subsequent beneficiary, because section 53 exemption applies if the transfer reverts to the same beneficiary. Therefore, I conclude, provided that the beneficiary who applies (together with the trustee) was not previously the beneficiary of the IIP, an application for S260 is valid.