Separate settlements: transfer to a pre-existing settlement
If an individual executes a deed of settlement under which trustees hold property, even if it is a nominal amount of cash, it is clear that a separate settlement has been created. Therefore if assets are transferred from an old settlement to this new one, it seems clear that assets have passed from one settlement to another. Therefore in this situation it should be maintained that the settlements are separate and there has been a disposal within TCGA92/S71 (1) even if the trusts of the new settlement are not exhaustive. If the trusts of the new settlement did fail then the property would be held by the trustees of the new settlement on the trusts of the old, unless the property were to be actually transferred back.