Where limited interests are originally conferred, each
beneficiary can make an independent variation relocating all or
part of his beneficial interest in the property. But where an
instrument purports to relocate the entire beneficial interest in
the whole of the property, all persons with original limited or
residual beneficial interests in that item will need to be parties
to the document. Cases which involve dealings with only some of the
beneficial interests and/or part of the property subject to them
therefore require particularly careful scrutiny to ensure that all
necessary parties are joined. You should refer any doubtful cases
TG.
You should not accept a variation which seeks to redirect a
life interest after the life tenant has died (
IHTM35042) as qualifying for relief
under IHTA84/S142 (1).
A variation which may fail at some future time can none the
less qualify for immediate relief under IHTA84/S142 (1). If the
immediate trusts, as varied, are valid but a gift over may fail,
for example, because it may be in breach of trust, any relief
immediately due can be allowed. It is sufficient in such a case
merely to draw the taxpayers' attention to the possible future
failure.
