½Û×ÓÊÓƵ

The term 'dispositive powers' is used to mean powers which affect or determine the destination of income or capital, or the beneficial interests which subsist from time to time in them.

The term is used here in contrast to administrative powers, which are considered in I5.143.

Dispositive powers may be special or general, and special powers may be fiduciary (as with ones to be exercised by the trustees from time to time of the settlement) or not (as with ones to be exercised by the life tenant in favour of his own children). Although these distinctions can be very important in many contexts, they have little or no importance for IHT purposes.

It should be noted, however, that if there is a general power exercisable over property which is not settled property, that property will be treated for IHT purposes as if it formed part of the estate of the person who possesses the power¹, whereas settled property² subject to a general power which has not yet been exercised is usually