IHTM16221 - Settled property: interest in possession for services as trustee

If a person is entitled to an interest in possession under the terms of a settlement as remuneration for services as a trustee (a very rare event in modern times) IHTA84/S90 provides a relief:

To the extent that it represents no more than a reasonable amount of remuneration

• the interest shall be left out of account in determining the value of his estate at death for IHT purposes
• tax shall not be charged under IHTA84/S52 when the interest comes to an end.

If the interest is of more than a reasonable amount the excess will be taxed.

These provisions apply to all trustees, whether original or successors.