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At a recent course I was interested to hear the speaker talk about the use of IHTA 1984 s 11 as part of estate planning. Section 11 says that dispositions for family maintenance are not transfers of value.
Given that the cost in the UK of bringing up a child to age 18 is estimated at anything up to £200 000 could somebody with two young children write a will directing that £400 000 is put into a bank account for the benefit of his children so that if he died suddenly that sum would immediately escape inheritance tax?
What are the benefits and pitfalls here and what experience do readers have of HMRC’s attitude to using s 11 in this way?
Query 19 967 – Curious.
Section 11 only apples to lifetime gifts.
The relief in s 11 applies only to dispositions (ie gifts made during lifetime...
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