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An exam question re IHT

An exam question re IHT

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Unashamedly an exam question, hope that's ok with y'all!

A dies and leaves all her money to an IIP trust on death. Her husband is the life tenant.

The answer treats her as retaining her full NRB, so the husband can use it. Is that because gifting to an IIP where your spouse is the life tenant is akin to gifting to your spouse (so the transfer is exempt), or is it something else?

For the record, I got the rest of the question (and most of the others before it) right, I'm just struggling to understand this point.

Thanks all!

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By andy.partridge
24th Aug 2014 15:13

Double time on a Sunday. It being a Bank Holiday weekend too, it's triple.

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By johngroganjga
24th Aug 2014 15:13

Yes

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The triggle is a distant cousin of the squonk (pictured)
By Triggle
24th Aug 2014 15:55

If the question states or implies that the death of the wife occurred before 22 March 2006 then I agree with John.

If the question states or implies that the wife died on or after 22 March 2006 and the husband had an immediate post-death interest in the IIP trust then, again, I agree with John.

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Portia profile image
By Portia Nina Levin
02nd May 2015 12:54

(No subject)

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The triggle is a distant cousin of the squonk (pictured)
By Triggle
24th Aug 2014 16:04

I don't know Portia - I haven't read the exam question.

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Portia profile image
By Portia Nina Levin
02nd May 2015 12:54

(No subject)

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By Manwithnoname
25th Aug 2014 22:11

Thanks
Thank you all, cheques in the post Andy ;)

And I do apologise for the y'all's, I genuinely have no idea what came over me and don't believe I have in fact ever y'all'd in my life up to this point...

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