A died and left 1/3 of estate to wife absolutely + life interest in home. Residue left to family trust with wife having an interest in possession to all income from the 2/3 trust. Interest in possession accepted by Revenue and all trust income returned over the years by wife. A’s will states that everything to be liquidated on wife’s death and distributed to adult children. Trust owns residence, an apartment and securities. My question is – does CGT arise for the trust on the death of wife or is the 2/3 treated the same as wife’s 1/3 as she had an interest in possession. Revenue guidelines appear to indicate that CGT does not arise?
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