Settled property: interest in possession for services as trustee
If a person is entitled to an interest in possession under the terms of a settlement as remuneration for services as a trustee (a very rare event in modern times) IHTA84/S90 provides a relief:
To the extent that it represents no more than a reasonable amount of remuneration
- the interest shall be left out of account in determining the value of his estate at death for IHT purposes
- tax shall not be charged under IHTA84/S52 when the interest comes to an end.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
If the interest is of more than a reasonable amount the excess will be taxed.
These provisions apply to all trustees, whether original or successors.