Finance Bill blues

In most cases the settled property typically a share in the matrimonial home passes to discretionary trusts following the end of the survivor's interest and hence will not be immediate post-death interests under the Finance Bill (with the consequence that the transfer into trust will be treated like an initial transfer to a discretionary settlement under the existing inheritance tax rules). Of course these wills may need to be revisited as and when the proposals are enacted. However is this all bad news?
I would greatly appreciate the views and advice of Taxation readers as to whether there may be tax advantages that outweigh the potential disadvantages in these situations.
Query T16 804 — Devil's Advocate.

Reply by Hodgy:

The provisions of Finance (No 2) Bill 2006 Sch 20 essentially seek to ensure that the inheritance tax treatment of many interest in possession...