From: John Smith 
Newsgroups: uk.finance uk.legal uk.consultants
Subject: Re: DOMICILE, IHT and burial
Date: Tue, 25 Nov 2003 15:43:27 +0000


 john boyle  wrote:

>>>>Does this mean that the Revenue might ask to see a copy of your
>>>>current Will?
>>>>
>>>
>>>Yes, they see every will which is proven in probate.
>>
>>But you've got to die first for that!
>>
>
>Of course!! (Sorry about that!)

We must be talking cross-purposes. I was asking if there are
circumstances where the Revenue might want to see the Will of a LIVING
person.

"Obviously" one can change a Will at any time (before one's death,
generally :). But there are situations where this can be prevented; if
you agree in a contract to make certain provisions in your Will then
these can be enforced after your death by the party relying on those
provisions having been made. I discussed some case law on this with a
solicitor recently. You can agree to make a provision in a Will as
part of a divorce settlement and this can be enforced even if you
changed the Will later. Not a lot of people know this...

>>>>Obviously for IHT purposes they will wait for you to die first :)
>>>>
>>>
>>>Hopefully!! Although IHT is chargeable on some lifetime gifts.
>>
>>Would you give an example? I thought you had to die for IHT.
>>
>
>A settlement to a discretionary trust attracts IHT at the lifetime rate 
>which is currently half the full rate. Thereafter there is a periodic 
>charge to IHT every 10 years and also a charge on certain other 
>transactions carried out by the trustees.

Presumably it would make sense to make such settlements over time,
each one being below the IHT threshold? Or is one allowed only one
contribution per lifetime for IHT purposes?