IHT on assets inherited from a Trust
Posted: May 31st, 2021, 12:43 pm
Parents set up Trusts - one each. The beneficiaries are:
1. Their two daughters who both get income from the investments.
2. The children of the two daughters inherit the capital assets on the death their mother.
So one of the daughters died and the Trusts were split and half the assets were distributed to the children of that daughter. When the second daughter died, the Trusts were wound up and remaining assets were similarly distributed.
My question is whether the fact that the assets were in a Trust, has any bearing on the application of IHT, or whether the setting up of the Trusts was purely a way of ensuring that grandchildren would inherit capital from their grandparents?
1. Their two daughters who both get income from the investments.
2. The children of the two daughters inherit the capital assets on the death their mother.
So one of the daughters died and the Trusts were split and half the assets were distributed to the children of that daughter. When the second daughter died, the Trusts were wound up and remaining assets were similarly distributed.
My question is whether the fact that the assets were in a Trust, has any bearing on the application of IHT, or whether the setting up of the Trusts was purely a way of ensuring that grandchildren would inherit capital from their grandparents?