Mark McLaughlin looks at ‘precatory trusts’ and outlines their treatment for inheritance tax purposes.
It is generally accepted wisdom that individuals should have a will, so that they can decide what happens to their money and any other assets (e.g., the family home) when they die.
Your flexible friend!
Wills can offer some flexibility for inheritance tax (IHT) purposes. For example:
A ‘deed of variation’ broadly offers a two-year window for an adult beneficiary to rewrite a disposition from the deceased’s will. The variation is treated as having been effected by the deceased.
A ‘discretionary will trust’ broadly allows distributions to be made within two years of death without an IHT charge out of assets settled on the discretionary trust by the