IHTM35183 - Distribution from a relevant property trust settled by Will: what you should do if you receive a deed of appointment
If you receive a deed of appointment under a discretionary trust created by will and the taxpayers are claiming that IHTA84/S144 applies to the deed, you should refer the case to Service Technical Support (or Technical for complex cases) who will advise whether or not the provisions of IHTA84/S144 apply. Unlike instruments of variation, there is no need for an election.
You should not accept as valid a deed of appointment in favour of a beneficiary who was dead at the date of the appointment (whether or not the beneficiary survived the testator). This is particularly relevant where the appointment is in favour of a deceased spouse or civil partner and there is a Transferable Nil Rate Band claim on the survivor바카라 사이트™s death.
A beneficiary바카라 사이트™s right to benefit under a discretionary trust ends on their death. So, any appointment which claims to benefit a beneficiary after their death is not valid. This means that a claim that spouse or civil partner exemption applies on the first estate because of the terms of the appointment and the provisions of IHTA84/S144 is not valid when considering the amount of nil rate band available to be transferred to the survivor바카라 사이트™s estate.
You should refer any cases where this view is not accepted to Technical.