Additions to Settlements

(rogerhancock) #1

Most well drawn settlements give trustees a power to accept additions to the trust - but can they in the absence of such a power ? I have a trust where trustees have a specific power to accept more investments in the settled OEIC - but can they accept other assets ? (They do have a power to vary/diversify investments.

Roger Hancock

(Paul Saunders) #2

My understanding is that trustees can validly accept additions to a trust, regardless of whether there is a specific power to do so.

The issue, though, is whether, for tax purposes, the addition forms part of the existing trust or is a separate “settlement” held on like terms, even if settled by the original settlor.

Paul Saunders