18 – 25 trusts
If a will leaves a gift to minor children or stepchildren conditional upon them attaining the age of 25 years or earlier (but later than 18 years) this will create an 18 – 25 Trust. These trusts have special treatment for inheritance tax purposes so that they are exempt from the 10 year anniversary charges which arise under the relevant property regime. Such trusts can be created on any date providing that it is a trust for the benefit of a person under the age of 25 years and at least one of the beneficiary’s parents has died.
It is, therefore, usual for such trusts to be created under the will of the deceased parent however they can also be created under the Criminal Injuries Compensation Scheme and Victims of Overseas Terrorism Compensation Scheme. Some trusts created before 22nd of March 2006 (whether during lifetime or on death) may also qualify.
For anything further, one of our specialists would be delighted to meet you either in our office or in your own home to talk through your requirements and answer any questions. Please contact us at any time.