Discounted gift trust - do I have to mention it at all?

MarkWatson

Hello, I'd be grateful for any thoughts on this.
I am an executor for an estate where the person who died had, over seven years ago,  set up a discounted gift trust in favour of their children. I am wondering whether I need to mention this at all in the Inheritance Trust forms? As it is over seven years ago, I assume it is all dealt with - would that be right?
Thanks in advance!

xylophone

https://www.moneymarketing.co.uk/view-from/discounted-gift-trust/
may be of interest.

MarkWatson

Thanks v much xylophone, that certainly suggests they can be out of an estate. I just worry that I may be expected to mention somewhere that one is in place.

Dox

Ask direct: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-and-inheritance-tax-enquiries

MarkWatson

Thanks Dox!

getmore4less

CLTs drop out after seven years as long as no PETs are created after the CLT. If a settlor creates a mixture of PETs and CLTs, this can lead to a 14-year timeline. If a PET fails and become chargeable, it pulls in any CLTs made within seven years of the failed PET, thus potentially going back 14 years.

The 7 year rule is really a 14 year rule under some circumstances.

HMRC manual has more information on when you have to go back further.

MarkWatson

Thanks v much indeed getmoreless - can I ask, if they have dropped out, do I have to mention them on the forms at all?

Keep_pedalling

MarkWatson said:

Thanks v much indeed getmoreless - can I ask, if they have dropped out, do I have to mention them on the forms at all?

No, but you need to make absolutely sure that is the case. As has already been pointed out any failed PET gifts complicate matters.

MarkWatson

Ok thanks, will do.