Simple Probate Trust

Chargeable Gain After Death on Probate Trust, where to charge tax?

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Hello All

I'm doing a tax ret to DoD and the client had put a bond into a "simple probate trust" to avoid manx probate costs mainly. I'm asuming this is a bare trust?

The client died mid tax year and the bond was cashed in the March. The IFA has suggested that it was see through so chargeable on client, and has calculated the tax with top slicing etc. I'm not sure this is correct as fisrtly it occured afrer DoD so should be either part of the estate post DoD or perhaps more properly the beneficiaries should be responsible for delcaring it on individual tax returns.

Am I correct at all?

Many thanks

   

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By michaelblake
24th Jan 2017 16:51

"Probate trust" is simply a marketing name used by life companies and IFAs. You need to get your hands on the documentation to find out exactly what you are dealing with -see for example the outline guidance in the article at http://www.whatinvestment.co.uk/how-can-probate-trusts-help-in-estate-pl...

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