I need some advice on the following;
I have been asked for act for a trust, but I’m concerned that the Will creating the Trust is so badly worded there is a fair amount of uncertainty around whether a trust has been created. There is no mention of any statutory provisions.
The Will does clearly name Trustees. On death the Will gave all the residue to the Trust. It was clearly worded that all the income should be paid to X. On Xs death (and she has died), it states ‘shall use the said income to support Y during her minority’. Is this wording sufficient enough to provide a interest in possession? my concern was around the word ‘support’, the Will gives no indication about whether that should be the entire income and in what respect she should be supported.
It then goes on to say ‘at the end of the minority of Y’ my Trustee to hold on Trust for the said Y until they obtain a first degree from any British University or any other professional equalisation’.
In respect of the above, what should happen to the income of the Trust whilst Y is an adult but hasn’t yet obtained a degree or equivalent? what if she never does?
We aren’t talking about a huge amount of money at all. HMRC have no knowledge of the Trust and so I can only assume the first life tenant reported the income arising as hers during her lifetime.
From now on, can I treat as a life interest trust? or is there too much uncertainty? Has the trust failed? should it all have reverted under the intestacy?
Claire Spinks
British Taxpayers