A will creates an IPDI in the residue for the surviving spouse. There is no power to appoint capital. One of the trust assets is a 99 per cent shareholding in a limited company, the main asset of which is an offshore bond. The spouse relies on regular capital payments from the bond to supplement her income. All the remaindermen are in agreement that these payments should continue. I am not sure what the correct mechanism would be for authorising such payments. Would it be a deed of variation creating a flexible life interest trust, coupled with a deed of appointment appointing out capital from the bond?
I would welcome members’ views.