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New queries, issue 4567

13 September 2016
Issue: 4567 / Categories: Forum & Feedback

Vexed valuation; House and garden; Double trouble?; Speak now

Vexed valuation

Advice is required on the valuation of a life interest on a change of beneficiaries.

In 1999 a grandfather created two life policy trusts. One contained an investment bond linked to his life and the other a life assurance policy.

The grandfather paid the annual premiums on the life policy. The original trust documents provided that his daughter would be the current beneficiary receiving all of the trust income. The trusts would appear to be interest in possession trusts.

By power of appointment in 2005 grandfather replaced his daughter as beneficiary with his grandson. His daughter died in 2011 and grandfather died this year. I am advised that in 2005 when her interest in the trusts came to an end the daughter was deemed to have made a potentially exempt transfer. Consequently the 2005 value of the trusts must be brought into...

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