IHTA84/S22 (4)(b) brings “persons becoming entitled on
the failure of trusts in favour of issue of the marriage or civil
partnership” within the range of permissible beneficiaries.
Do not use the subsection to refuse exemption merely because such
persons may not become entitled immediately on the failure of the
trusts for the issue. For example, a trust for issue of a
subsequent marriage or civil partnership (
IHTM11032), interposed between the
trust for issue and the remainder to strangers, would not oust the
exemption.
However a trust for issue of the marriage or civil
partnership for some limited interest does not satisfy IHTA84/S22
(4)(b). Such a trust does not vest the property indefeasibly. The
persons becoming entitled do so on the determination and not the
failure of the trust.
"A power of appointment to a person" within IHTA84/S22 (4)(a)
or (c) means a power (to any appointor) to appoint to an appointee
who is within paragraph (a) or (c).
