Summary
The High Court granted rectification of trust deeds that would otherwise have had ‘catastrophic’ implications for IHT purposes.
Background
An application for rectification or rescission was made by the trustees of a settlement. The claim related to two deeds of revocation and appointment in 2008 and 2014. Each of the deeds effected a revocation and reappointment of the trusts on which certain shares of a trust fund were held under a settlement originally created in 1964.
Changes in March 2006 to the IHT treatment of interests in possession in settled property meant that the termination of a post-2006 interest in possession, followed by the creation of a new interest in possession, would (subject to limited exceptions) result in an immediate IHT charge. However, where an individual continues to have a qualifying interest in possession created prior
