Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Distribution from a relevant property trust set up by Will: introduction

Where the testator wishes to give their beneficiaries maximum flexibility in the way in which their estate is distributed, it is not uncommon to see the whole estate, or at least an amount equivalent to the nil-rate band, left on relevant property trusts. Where the trustees subsequently make an appointment of the trust property, IHTA84/S144 operates in a similar way to IHTA84/S142 and applies the IHTA as if the will had provided that the on the testator’s death, the property had passed according to the appointment.

A power of appointment under a will is vested in the executors/trustees as from the death, and is exercisable over all residue, whether ascertained or not, unless, as a matter of construction, the will clearly demonstrates a contrary intention.