Any Answers answered: What is the definition of 'disabled person' under new trust law?By Matthew Hutton
Question: What is the definition of 'disabled person' for purposes of the Finance Act 2006 changes to the Inheritance Tax Treatment of Trusts?
Answer: the definition is (in broad terms): a person who
- cannot administer his property or manage his affairs by reason of mental disorder; or
- is in receipt of an attendance allowance, or
- receives a disability living allowance through entitlement to the care component at the highest or middle rate.
See IHTA 1984 s89(4)-(6).
The Four Categories
FA 2006 expands on the regime hitherto p