Annual exempt amount: settlements: disabled persons: property applied
For example, two sisters, A and B, are each entitled to half of the income from settled property. When one dies, her half share goes to her children absolutely. Suppose that B is disabled and therefore the settlement is potentially qualifying for the main exemption. The income test in CG18060 is met because B gets half the income. If A dies first, then half the property will be transferred to her children. If this were to be regarded as applying property, the settlement would fail to meet the test in CG18060: the only transfer on that occasion would be to A’s children and B would get nothing, because no property can be transferred to her during her lifetime.