Property settled into Trust with liferenter enjoying occupancy until death some years on. On death of liferenter, beneficiaries entitled to total residue of the estate but property was let to a family friend with the agreement of beneficiaries. Several years later the tenant died and property is sold at significant uplift in value. Funds to be distributed to beneficiaries but who pays CGT on property gain? I understand that on death of the liferenter the beneficiaries would have become absolutely entitled to the assets of the Trust and therefore the IIP Trust would become a Bare Trust with CGT obligation passing to the beneficiaries and their base cost established as market value at the date of liferenter's death. Please correct me or point me in the right direction!
derek brown
3rd May 2007
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CGT on sale of assets by Trust
CGT on sale of assets by Trust