Old Style A&M Trusts

(Jennifer James) #1

I have just taken over an old style A&M created by court order in 1994. I have little background information at present but do not believe any action taken between 2006 and 2008. The court order in any case allowed for the beneficiary to become entitled at 23. I cannot recall if anything had to be placed in writing to confirm this in accordance with the legislation at the time so that the trust would benefit from “18-25 Trust” status. The options I recall were “Do Nothing” and trust became a Discretionary Trust at 6/4/2008. Amend to allow access at 18 Or amend to allow access pre 25 and benefit from “18-25 Trust” Status. As access was already pre 25 does this automatically benefit from “18-25 Trust” even if nothing was done at the time? The beneficiary has achieved 23 years now and assets effectively held in a bare trust!

Jennifer James
WBV Ltd

(Graham) #2

This meets the criteria for an 18 - 25 trust (see the conditions in s.71D (6) IHTA 1984).

There was an exit charge for IHT on attaining 23yrs, apportioned over the number of quarters from attaining 18yrs (or April 2008 if the beneficiary was already 18 at that date) to 23yrs.

Graham Barry
New Quadrant Partners Ltd

(Jennifer James) #3

Thank you
That was my view just wanted someone to confirm my opinion.

Jennifer James
WBV Ltd