S2. Variation and disclaimer of inheritance

INHERITANCE TAX

- Trust settled by will, within 2 years of death, granting interest that would have amounted to IPDI

- If:

(1) property is settled by a person's will; and

(2) within 2 years of death, there is an event causing the property to be held on trusts that would, if in the will, have given rise to an IPDI

then: IHT applies as if the will had so provided (IHTA 1984, s.144).

Legislation:

Cases:

HMRC manuals:

Commentary:

Gift with reservation of benefit

- Variation or disclaimer that takes effect retrospectively for IHT purposes does not give rise to GWR

- If a person who joins in a variation or makes a disclaimer subsequently enjoys/benefits from property they were originally entitled to, there is no GWR for that person because the variation/disclaimer is treated as having been effected by the deceased (IHTA 1984, s.142).