Malcolm Finney looks at some aspects of potentially exempt transfers which are not commonly known, or are often forgotten.
Relevance of 22 March 2006
Cessation of PET treatment.
From this date, most gifts by individuals into trust no longer qualify as potentially exempt transfers (PETs) and became immediately chargeable. This applies to gifts into lifetime interest in possession trusts (subject to a few exceptions), which had not been the case pre-22 March 2006. Thus, it became no longer possible to set up, post-21 March 2006, new lifetime trusts with qualifying interests in possession.
(b) Termination of qualifying interest in possession trusts
PET treatment on the termination of a qualifying interest in possession only applies, after 21 March 2006, if the trust terminates at that time.
(c) Lifetime
