This month's review, by private client tax experts at Mishcon de Reya.
Smith v Stanley: whether to set aside trustees’ action based on incorrect tax advice
In Smith v Stanley [2019] 2 WLUK 174 the testator’s will created a life interest trust for the benefit of the widow with a discretionary trust in remainder. The trustees made the decision to enter into a deed of appointment bringing the life interest to an end and creating a discretionary trust over the funds in favour of the existing discretionary beneficiaries.
The termination of a life interest following which a relevant property trust continues is a chargeable lifetime transfer. As a result of signing the deed the trustees incurred an unexpected 20% inheritance tax liability on the value of the appointed funds. The trustees had signed the deed under the misapprehension that the deed of appointment would be treated as a potentially exempt transfer...
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This month's review, by private client tax experts at Mishcon de Reya.
Smith v Stanley: whether to set aside trustees’ action based on incorrect tax advice
In Smith v Stanley [2019] 2 WLUK 174 the testator’s will created a life interest trust for the benefit of the widow with a discretionary trust in remainder. The trustees made the decision to enter into a deed of appointment bringing the life interest to an end and creating a discretionary trust over the funds in favour of the existing discretionary beneficiaries.
The termination of a life interest following which a relevant property trust continues is a chargeable lifetime transfer. As a result of signing the deed the trustees incurred an unexpected 20% inheritance tax liability on the value of the appointed funds. The trustees had signed the deed under the misapprehension that the deed of appointment would be treated as a potentially exempt transfer...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")