I am dealing with a Will which purports to pass the residue of the estate into an interest in possession trust.
The wording is as follows: “The trustees of the IIP Trust shall hold the trust property on trust for such of the beneficiaries defined in Section A in such shares and in such manner as the trustees (being at least two in number or a trust corporation) shall in their absolute discretion appoint by deed or deeds revocable or irrevocable and executed at any time during the Trust Period and in default of appointment or so far as no such appointment shall extend for the benefit of the beneficiaries defined in Section B”
The beneficiaries in Section A are the surviving spouse and others. The beneficiary in default at Section B is the surviving spouse only.
There are no specific clauses/powers concerning what should happen to the income of the trust fund and there is no specific power to accumulate income.
The STEP standard provisions and Special provisions 2nd Edition are included.
It has been suggested to me that the above creates an IPDI in favour of the surviving spouse (which would mean the spouse exemption would apply). What are your thoughts on this please?