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Commentary

I9.131 Foreign trusts for IHT

IHT, trusts and estates

The expression 'foreign trusts' is not used in the IHT legislation. Nevertheless there are specific provisions for trusts with a foreign element:

  1. Ìý

    •ÌýÌýÌýÌý Where property comprised in a settlement is situated outside the UK, the property is excluded property unless the settlor was domiciled in the UK at the time the settlement was made1 — see I9.332.

  2. Ìý

    In HMRC's view the settlement is made when the asset is transferred to the trustees to hold on the declared trusts2.

  3. Ìý

    Where the property is settled by Will or under the intestacy rules, the relevant date is the date of death3.

  4. Ìý

    Where property is added to a trust, it is the date of addition which is relevant4.

  5. Ìý

    •ÌýÌýÌýÌý Exempt government securities comprised in a settlement are excluded property if certain conditions as to the beneficiaries not being resident (and, before 6

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