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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.7 Reversionary interests and powers of appointment /IHT treatment of reversionary interests / I5.722 Partitions between life tenant and remainderman
Commentary

I5.722 Partitions between life tenant and remainderman

IHT, trusts and estates

It is possible for a life tenant and remainderman to agree that they will end the trust. For the life tenant it means that he receives a capital sum where he only, previously, had the benefit of income. For the remainderman it means getting his hands on the funds early, albeit a reduced amount. This arrangement is a matter of negotiation based on various factors such as financial needs and life expectancy.

The main IHT provisions can be illustrated by an example where property (£500,000) is held on trust for

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