I am reviewing a Will where the grandparent left 40% of residue to their 4 grandchildren “who reach 21 and in equal shares absolutely”. 40% amounts to around £300,000.00.
The Deceased died more than 2 years ago. The Will incorporates the STEP provisions.
Is it possible to appoint the 40% out to 4 Bare Trusts for the grandchildren now? Otherwise, my understanding is that the trust is treated as part of the Relevant Property Regime.
I don’t see why you couldn’t advance the shares onto bare trusts under s.32.
The trustees should give consideration to the fact that some beneficiaries could lose out if one of their number died prior to their 21st birthday, as well as the additional risks of them having access to considerable sums three years early. That would be weighed against the tax benefits of them becoming absolutely entitled immediately.
Thank you Andrew. We’re calculating the exit charges presently.