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Where Taxpayers and Advisers Meet

Interest In Possession and PET

Joined:Sat Nov 11, 2017 3:32 pm
Interest In Possession and PET

Postby steven13 » Fri Jan 21, 2022 1:38 pm

My mother, together with myself and my children were named beneficiaries in an Interest in Possession Trust set up by my grandfather in 1990. My mother was originally named as the 'current beneficiary' which entitled her to the trust income. In 2005 my grandfather changed the 'current beneficiary' from my mother to myself. I understand that for IHT purposes my mother was deemed to have made a PET as of the date of the change and in accord with the Trust value as at that date.
My mother passed away in 2011 and my question is whether the value of the PET attracts any taper relief when calculating the IHT liability on my mothers estate.

Joined:Fri May 16, 2014 3:47 pm

Re: Interest In Possession and PET

Postby AGoodman » Mon Jan 24, 2022 3:13 pm

Potentially yes, assuming the trust fund was greater than £275k

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