Revocable Deed of Appointment of Life Interest

Trusts Discussion
1

I would welcome your thoughts on this point please.

I have a case where we have a Discretionary Trust (with full powers of advancement and powers to create further settlements) and from that the trustees wish to create a revocable deed of appointment of Life Interest to appoint assets to only one of the beneficiaries.

My question is would a further settlement need to be created within the original trust to appoint a Life Interest to that beneficiary, or would this all be included in the revocable deed of appointment?

I have been looking at Kessler and would welcome your thoughts on a suitable precedent.

Thank you

2

There seems to be some confusion of terminology here. If the trustees have power to do so, they may revocably appoint a life interest to a single beneficiary. There are many suitable and straightforward precedents, though I don’t have them to hand. No new settlement is required - this is not a new settlement for IHT purposes, and is unlikely to be a resettlement for CGT purposes.