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
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
@paul We have a trust with the following wording “The Trust Fund” means: (i) property transferred to the Trustees to hold on the terms of this Settlement; and (ii) all property representing the above. It is my understanding from this wording that any addition by the original settlor would form part of the existing trust however your comment above suggests that an addition by the original settlor can create a separate settlement, can you provide any further guidance on this?
Stephanie Heath