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Immediate post-death interest (IPDI)
Practical Law UK Glossary 8-382-5636 (Approx. 8 pages)
Glossary
Immediate post-death interest (IPDI)
An interest in possession (IIP) trust where:
- The trust is created by a will or under the intestacy rules.
- The life tenant obtains the IIP on the death of the testator (if there is a will) or intestate (if there is no will).
- The trust has not qualified as a trust for bereaved minors or a disabled person's interest since the IIP began.
(Section 49A, Inheritance Tax Act 1984.)
An IPDI is not taxed under the relevant property regime for inheritance tax; instead the life tenant is treated as if he owned the trust property.