Legacy to Trustees to hold until 18 and 21

I have had my manuals out and trawled the forum but I feel I need help! We are administering an estate where there is a £100,000 legacy paid by a non relative, 'sum of £100,000 to my trustees to divide into 2 equal parts, and to distribute 1 equal part to x absolutely on attaining 18 and remaining 1 part to x on attaining 21 absolutely.

I hope I correct in assuming this is a vested interest as the minor child survived the deceased but my question is…

  1. Is it all a bare trust?
  2. If not is the first tranche a bare trust and the second part an IPDI?
  3. If not is the first part a bare trust and the second part entering RPT?

I would be grateful of feedback, just as I think I have the answer I read something else which puts doubt in mind!

Rachael Waring
Frodshams Solicitors

Is the age requirement merely deferring payment or are there
consequences if the beneficiary fails to attain 18 or 21?

If merely deferring payment, this will be ineffective and the
beneficiary is absolutely entitled.

However, if payment is conditional upon their survival to the specified
ages, the nature of their entitlement whilst under the specified ages
will depend upon the further provisions (or lack thereof) within the

Paul Saunders

They sound like they are not contingent on reaching the ages, but vested. So, if the rest of the Will does not say anything different, I believe they are bare trusts, subject to s31 until 18.

Simon Northcott

Thank you to all, the more I looked at it Wednesday morning the more I too thought it to be a bare trust as there are no consequences it is merely the Trustees holding it and then distributing it at the times the testator has specified.
I shall learn not to doubt myself so much in future; I say being a fairly new TEP is akin to passing your driving test, you have the badge but aren’t quite the finished article!

Thank you again :slight_smile:

Rachael Waring
Frodshams Solicitors

As there is a contingency, I don’t think it can be a bare trust. Presumably if the child did not attain the relevant age, the legacy would fail and fall into residue.

As the child is a minor, and assuming that s.31(1)(i) is not disapplied, I think it is unavoidable that the entire fund will be relevant property.

Unless there are contrary provisions in the will, it should be possible to exercise the s.32 power of advancement to advance the entire sum onto bare trusts for the child. This should be read back to the will under s.144 so no IHT return is required.

Andrew Goodman
Osborne Clarke LLP

From the wording I do not believe there is a contingency. If so, it is vested now.

Simon Northcott