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HMRC internal manual

Inheritance Tax Manual

Life Policies: trusts of life policies: policy settled on its own trusts: conditions required for policy to be comprised in a settlement

A policy is comprised in a settlement if

  • a beneficiary is given a life interest (IHTM16062), or
  • it is held for a person absolutely, subject to being defeated, for example

    • by failure to survive to a given date, or
    • by failure to survive to a given event, or
    • by the exercise of a special power of appointment
  • it is held for persons contingently (IHTM16066), for example

‘for such of the children of Xavier as survive Xavier’.

See the examples at IHTM20154 (England, Wales and Northern Ireland) and IHTM20155 (Scotland).