Q&As

An individual, X, joined a trust-based pension scheme in 2006. In 2011, X established a £10 pilot trust. Following X’s death in 2012, the trustees of the pension scheme transferred X’s death benefits to the pilot trust. What perpetuity period applies to the transferred death benefits?

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Published on LexisPSL on 19/06/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • An individual, X, joined a trust-based pension scheme in 2006. In 2011, X established a £10 pilot trust. Following X’s death in 2012, the trustees of the pension scheme transferred X’s death benefits to the pilot trust. What perpetuity period applies to the transferred death benefits?

How the rules against perpetuities and excessive accumulations apply to pilot trusts holding pension death benefits arising under a trust-based pension scheme is a complex topic and some areas of ambiguity exist depending on when the member joined the pension scheme and when the pilot trust was created.

The decision of Goff J in Re Meadows Staff Pension Scheme Rules—broadly supported by the Privy Council decision in Baird v Baird—provides support for the view that, for the purposes of the perpetuity rule, the trust of a member

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