IHTM04102 - Settled property: charges on trusts for disabled persons

Property ( IHTM04030) transferred into trust after 9 March 1981 which is held on discretionary trusts primarily for the benefit of a disabled person is treated for the purposes of IHT as if the disabled person had an interest in possession ( IHTM16000) (IIP) in the property, IHTA84/S89.

Distributions out of such property to the disabled person are not taxable, but a charge to IHT will arise on their death and the trust fund will form part of their estate. ( IHTM04029)