Chargeable transfers

The deceased created a settlement governed by Jersey law in which he was a life tenant with the property being held on discretionary terms for charities and relatives.

Following the death of his wife the deceased wrote an expression of wishes to the trustees that the remainder interest be divided so that two 25% slices would go to various relatives and the two other 25% slices would pass absolutely to the two charities.

The deceased died in 2001 and within 12 months the trustees appointed quarter interests in the residue of the trust fund as directed. The issue was whether the appointments to the two charities were exempt transfers of value under IHTA 1984 s 23.

The Special Commissioners said that s 23(1) did not apply on the death of the deceased because the two charities did not acquire the properties on that death....