Provided that A and C are together absolutely entitled to the trust fund (i.e. there is no provision for children, etc. to inherit if any of C die before A), they could enter into a variation to create a discretionary trust.
It should be noted, though that B will be deemed to be the settlor for income tax purposes (s.473 ITA 2007) as well as for IHT and CGT, provided that the variation includes the declaration that s.62(6) TCGA 1992 applies to the variation…
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
The will says ( in summary): to A for life, thereafter to C as shall be living at the date of death of the survivor of C and B. Proviso they if any of C die before the date of death of the survivor of C and B, then their respective children will take at 21.
In light of your comment, and of the provision about the survivorship, I think that we cannot do a deed of variation? The entitlement of C is contingent on survivorship and has not yet been satisfied?