Q&As

X settled an accumulation and maintenance trust prior to 2006. No changes have been made to the terms of the trust since its settlement. How will the trust be treated for inheritance tax purposes?

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Produced in partnership with Harriet Brown of Old Square Tax Chambers
Published on LexisPSL on 21/01/2019

The following Private Client Q&A produced in partnership with Harriet Brown of Old Square Tax Chambers provides comprehensive and up to date legal information covering:

  • X settled an accumulation and maintenance trust prior to 2006. No changes have been made to the terms of the trust since its settlement. How will the trust be treated for inheritance tax purposes?

X settled an accumulation and maintenance trust prior to 2006. No changes have been made to the terms of the trust since its settlement. How will the trust be treated for inheritance tax purposes?

The taxation of pre-2006 accumulation and maintenance trusts (A&M trusts) turns on the provision of section 71 of the Inheritance Tax Act 1984 (IHTA 1984). This will be the case where one or more beneficiaries will, on or before attaining a specified age not exceeding 18, become beneficially entitled to it, no interest in possession subsists in the property, and the income is not used for maintenance it is accumulated.

Further conditions for the application of IHTA

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