The definition of a settlement for IHT purposes is in IHTA84/S43
Except in cases of trusts made by will, a written instrument/deed is not usually necessary unless the property being settled is real property or an equitable interest (Law of Property Act 1925 S53). However, in the cases of settled property that we see, the reality is that written documents are invariably used.
Under IHTA84/S43 (4), in relation to Scotland the term “settlement” also includes
The term “deed” in IHTA84/S43 (4) includes any
disposition, arrangement, contract, resolution, instrument or
A liferent is the Scottish equivalent of an English life interest. A proper liferent differs from a trust liferent in that the property subject to it is conveyed direct to the liferenter instead of to trustees to hold for the behoof of the liferenter.