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Age 18–25 trusts

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Age 18–25 trusts

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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What is an Age 18–25 trust?

The special category of Age 18–25 trusts was introduced by FA 2006 to offer some compensation for the loss of old style accumulation and maintenance (A&M) trusts. The A&M regime offered exemption from IHT charges on trusts in favour of children and young adults up to the age of 25. The conditions were fairly narrow and precise but nevertheless enabled any settlor, both in lifetime and on death, to make provision for young people. See the Accumulation and maintenance trusts guidance note. After FA 2006:

  1. •

    existing A&M trusts could retain their IHT privileges only if beneficiaries became absolutely entitled to trust assets by the age of 18

  2. •

    new A&M style trusts could only be created for a child under 18 whose parent had died ― see the Trusts for bereaved minors guidance note

The Age 18–25 provisions extend both of these categories to retain some concessions for beneficiaries up to the age of 25.

Inheritance tax concession

Where property is held in a trust which qualifies

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