The Law Society Library explains where to find details of precedents for age 18 to 25 trusts, also known as section 71D trusts.

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Age 18 to 25 trusts / Section 71D trusts

From 22 March 2006, under the Finance Act 2006, new accumulation and maintenance (A&M) trusts could no longer be set up. See Heller, Cinderella trusts (2007) 151(7) SJ 221.

Many felt that is was not always appropriate to receive capital at age 18. The government responded to lobbying by inserting a new regime for age 18 to 25 trusts (also called section 71D trusts) into the Finance (No.2) Bill 2006. The Finance Act 2006 then inserted sections 71D to 71G into the Inheritance Tax Act 1984 (IHTA 1984).

For more details and commentary see:

  • Encyclopaedia of Forms and Precedents, volume 40(3) Trusts and Settlements (2019 reissue), paragraph 351 onward
  • Steel, Trust Practitioner’s Handbook, 4th edition (2018), page 240.

You can find precedents in the following resources:

  • Chamberlain and Whitehouse, Trust Taxation, 4th edition (2014)
    • form A1.7: 18 to 25 trust (section 71D).
  • Encyclopaedia of Forms and Precedents, volume 42(1) Wills and Administration (2016 reissue)
    • form 60: clause in will creating a basic age 18 to 25 trust: IHTA 1984 section 71D
    • form 61: clause in will creating basic age 18 to 25 trust: IHTA 1984 section 71D: modifying Trustee Act 1925 section 31
    • form 62: clause in will creating a flexible age 18 to 25 trust: IHTA 1984 section 71D.
  • Practical Will Precedents (loose-leaf)
    • form D5a: gift to children at specified age with option to qualify as trusts for bereaved minors or 18 to 25 trusts
    • form D5b: gift to children on flexible trusts for bereaved minors or 18 to 25 trusts
    • form D5c: gift to children on terms that they take their shares in stages at specified ages [optional deferral of income vesting to [25]].

Record last checked on 27 September 2019.

 

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