Inheritance Tax on an interest in a Trust

[Barquentine]

If the terms of the Trust Deed state the deceased's interest passes to a sibling at the date of death does that share need to be included in the inheritance tax calculation?

[themas]

Ring HMRC IHT helpline - they should be able to advise you. If you are not happy with what they say you may need to get advice from a solicitor or accountant experienced in IHT issues.

[Barmaid]

It's not really possible to say without knowing the type of trust and the various clauses dealing with taxation. But say it was the most common type of interest in possession trust where the property is left to A for her lifetime and on her death to B the following would result:- The property passing under the trust as a result of A's death is aggregated with her free estate and tax is charged on the full amount passing and then attributed proportionately to the free estate/aggregable funds.

However, the taxation of trusts is really complicated so I would suggest you seek the advice of an appropriately qualified trusts practitioner.