Wakefield House Clearance – Settlement and Settled Property

We undertake house clearance in all areas of Wakefield: Castleford Central Glasshoughton Knottingley Normanton Pontefract Crofton Ryhill Walton Featherstone Hemsworth South Elmsall Horbury South Ossett.

How Does Northern House Clearance Services Work?

  • The first step is to CALL US ON 07966 311 536 for prices/quote.
  • We will ask you a few simple questions in order to understand your situation.
  • We usually just require 24 hours notice. We like to turn up at 9am on the day of our appointment and stay until the house clearance is complete.
  • Once we have removed all of the furniture, junk & rubbish from the house we will issue you with an invoice for your records.
  • We ALWAYS keep household items to one side which we know can be either re-used or donated free to charity. Our house clearance charges are fair & we do NOT add 20% VAT on the final price.

A Full List Of Our Wakefield House Clearing Services

House clearances can be potentially stressful & troublesome if you use cowboy companies – Please look at our many House Clearance Recommendations

Settlement and Settled Property

A settlement is made when property is held in trust for successive beneficiaries, and the property which a ‘settlor’ puts into trust is called the trust fund or ‘settled property’.

Settlor

For inheritance tax purposes, a settlor is the person who makes a settlement or directly or indirectly provides the assets for a settlement

Settled property

House clearance Wakefield advises for inheritance tax, settled property includes property held in trust for successive beneficiaries, for any individual, but subject to a contingency (such as attaining a specified age) or under which the income is payable at someone’s discretion or has to be accumulated.

Property that is held under arrangements governed by the laws of another country, which have the same effect, is also settled property.

Not all property held in trust is settled property. For instance, property that is held by trustees who must distribute it to specified people is not settled property.

House clearance Wakefield would like to bring to your attention that some property not held in trust is settled property. For instance, property that is subject to a lease for life if the lease was not granted for full consideration in money or money’s worth may be regarded as settled property.

Tax on Settled Property

The taxation of settled property depends on the rights of the beneficiaries at the time in question. For example, if an individual is beneficially entitled to an ‘interest in possession’ in the trust assets, tax is charged when the interest comes to an end on or within seven years before the individual’s death as if they had transferred the assets as absolute owner. There are some exceptions.

If no individual has an interest in possession, tax is charged by treating the trust itself as a separate entity. Trusts that don’t have an individual who is entitled to an interest in possession are called ‘discretionary trusts’.

Since these rules depend on the rights of the beneficiaries at the time in question, there is no final classification of either the trust, or the property in it.

Both sets of rules may apply to the same property at different times or to different parts of the trust at the same time.