Death of person with interest in possession in part: special traetment
In some circumstances a strict construction of the words `corresponding part’ also makesfor complicated calculations of `cost’ of a composite nature. Accordingly, where aninterest in possession in a part of settled property ends in circumstances which give riseto a deemed disposal, the trustees may indicate that the ‘corresponding part’ consists ofparticular assets, provided that either
- the part of the settled property in which the interest terminates can be identified with specific assets in the fund
- they appropriate specific assets to give effect to the termination within a reasonable time (see CG36481) of its happening
in either case the treatment is not inconsistent with that adopted for IHT purposes.