My understanding is that so long as the terms of a trust provide that if a distribution is made, it meets the conditions for a disabled person’s interest, it is a disabled person’s trust and that this is not defeated by a power to accumulate.
If using a discretionary trust to qualify under s.89 IHTA, consideration might be given to including a provision to the effect that no power or provision contained within the trust shall be capable of being exercised or operated in any manner whatsoever which might prevent the trust satisfying the terms of a disabled person’s interest.
However, if using a discretionary trust, in the circumstances do you want it to qualify as a disabled person’s trust?
Paul Saunders