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Discretionary trust - initial levy

  • 15-04-2017 07:58AM
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    Is my interpretation of this correct?

    Initial levy 6 % payable on latest of following;
    - Date property settled on trust
    - Date of death of settlor
    - Date the youngest of the beneficiaries reaches 21

    Say for example parents have 3 kids and during parents lifetime place assets on trust.
    When youngest child reaches 20, parents inform trustees that they now have certainty in terms of who assets are to go to and vesting should occur.
    In this case is there no initial levy as none of the three events have occured?
    CAT payable as per Group A thresholds but no levies?


Comments

  • #2
    Penguin3029
    Registered Users, Registered Users 2 Posts: 56 ✭✭Penguin3029


    Almost entirely correct.

    It's not the date the youngest beneficiary turns 21, it's the date the youngest principal object turns 21. A child is a principal object. A stranger in blood wouldn't be. Small distinction, but important.


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