Commentary

I5.552 Qualifying conditions of 18–25 trusts—the beneficiary's entitlement

IHT, trusts and estates

I5.552 Qualifying conditions of 18–25 trusts—the beneficiary's entitlement

I5.552 Qualifying conditions of 18–25 trusts—the beneficiary's entitlement

The conditions referred to in I5.551 which must be secured by the trust are as follows1:

  1.  

    (a)     that the under 25 year old ('B'), if he has not done so before attaining the age of 25, will on attaining that age become absolutely entitled to:

    1.  

      •     the settled property

    2.  

      •     any income arising from it, and

    3.  

      •     any income that has arisen from the property held on the trusts for his benefit and been accumulated before that time

  2.  

    (b)     that, for so long as B is living and under the age of 25, if any of the settled property is applied for the benefit of a beneficiary, it is applied for the benefit of B, and

  3.  

    (c)     that, for so long as B is living and under the age of 25, either:

    1.  

      •     B is entitled to all of the income (if there is any) arising from any of the settled property, or

    2.  

      •     for property transferred into settlement on or after 8 April 2013, any of the trust income that is applied, is to be applied for the benefit of B

Trusts will not fail the above conditions by reason only of a power of advancement conferred on the trustees by2:

  1.  

    (i)     (for property transferred into settlement on or after 8 April 2013) the trustees having powers that enable them to apply in any tax year otherwise than for the benefit of B amounts of income or capital not exceeding the annual

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