10 year charge on Discretionary trust help !

[piper777]

Hi Jerome! Can i be very cheeky and ask one last question ?
I have not told you that as the Trust was set up by Will DOV there was also savings over 100K. therefore i believe not all the NRB would be allocated here only apprx 212K. Is this how it works, ?? and if so what would the new calculation be , if u don't mind !

Thank you kindly ... i will now seek professional advice, but trying to get a bit more informed in preparation!

[Jerome_Lane]

You should now seek the professional advice you mention; it makes no sense to keep spending uncharged time as you drip feed information. I usually generate fees for exactly this type of advice. You are more than welcome to engage our services. Good luck.

[piper777]

Thank you Jerome ---yes I understand this ---thank you for your help ---- i may well chase up with you on a professional basis .

[maths]

As. pointed out above drip feeding info' leads to incorrect advice being proffered. If a DoV was executed this would suggest professional advice was tendered following death?

I'm unclear as to the status of the trust.

Does the uncle have a right to occupy the property under the trust terms or do the trustees have a discretion under which they may allow him to occupy (assume uncle a discretionary beneficiary)?

If the former then the uncle will possess an IPDI for IHT purposes and no 10 year charge; if the latter then the trust will be subject to a 10 year charge.

Where there is no IPDI a possible CGT charge may apply on any appointment out of the trust property to one or more beneficiaries; on any appointment the trustees are deemed to have sold and re-acquired the trust property at its market value (then holding the property on bare trust for the beneficiaries). TCGA 1992 s225, if applicable, would exempt any capital gain from a CGT charge. For s225 to apply requires that the trust terms allow a trust beneficiary to occupy the property and such beneficiary does so occupy.

Where there is an IPDI, on any termination a CGT will arise if the trust then terminates and, as above, any gain may be exempt under TCGA 1992 s 225. If the trust does not terminate on termination of the IPDI no CGT consequences arise.

[piper777]

thank you Maths...... time for legal advice !!