Relevant Property Trust or Qualifying Interest in Possession?

Trusts Discussion
1

I would be grateful for assistance from forum members with the interpretation of some trust wording, as I have not seen this particular type of trust clause before.

The deceased died in 2011 and owned a 50% share of the property. The property was sold in 2025.

At clause 2 of the Will, it states that, “I GIVE all my share and interest in the freehold property … aforesaid to my daughters in the following shares: to [beneficiary A] forty per cent to [beneficiary B] forty per cent and to [beneficiary C] twenty per cent to be held by them on the trusts contained in clause 6 below.”

Clause 6 then states as follows:

"I GIVE all my property …to my Trustees UPON TRUST … to divide the same into five equal parts and to stand possessed thereof …

(1) as to four of such parts for my said daughters [beneficiary A] and [beneficiary B] in equal shares or to the survivor absolutely…

(2) as to the remaining one of such parts during the life of my daughter [beneficiary C] to pay or apply the whole or such part if any as they may in their absolute discretion think fit of the capital or income of such one part of the residuary estate and the investments for the time being representing the same (hereinafter called ‘the Trust Fund’) to and for the maintenance support or benefit of my said daughter [beneficiary C] with power in the like discretion to pay the rent or other expenses of a home or residence for her or to make any other like application of capital or income and subject thereto unapplied income of the Trust Fund shall during the life of my said daughter fall into and form part of the income of that part of my residuary estate passing under clause [6(1)] hereof

(3) After the death of my said daughter [beneficiary C] the Trust Fund or so much thereof as aforesaid shall fall into that part of my residuary estate passing under clause 6(1) hereof"

This trust clause reads to me as though it could be both a discretionary trust (albeit with only one beneficiary - C), or a life interest trust, which I think could be for beneficiary C, or beneficiaries A and B (given they appear to be entitled to receive any unapplied income as of right).

How would forum members interpret the trust clause - would this be a RPT or an IPDI? If the latter, who are the life tenants?

Joe Pegler
Chattertons Solicitors

2

It’s a right old mess but I would say RPT.

C clearly does not have a right to income as it is subject to the exercise of a discretion. A and B would receive income in default of an appointment to C but equally would not have a right to it as it arises.

3

How old is the will? If it’s pre-2006 I wonder whether it’s an attempt (operative word there) at an A&M trust.

4

It is dated 18 April 2006.

5

Another vote for RPT of the “C” share here