If the life tenant dies while the settlor is still living and the interest in possession reverts to the settlor on the life tenant's death, the value of the trust property is left out of account in determining the value of the life tenant's estate for Inheritance Tax (IHT) purposes – IHTA84/S54 (1)

Similarly where the interest reverts to a living spouse or civil partner (IHTM11032) of the settlor, or the settlor's widow, widower or surviving civil partner where the settlor has died less than two years earlier, and the spouse, widow or widower or surviving civil partner is domiciled in the United Kingdom, the value is left out of account – S54 (2).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.