An age 18 to 25 trust is a trust for the benefit of a person under the age of 25, at least one of whose parents has died, where the trust is established:

under the will of a deceased parent of the minor; or

under the Criminal Injuries Compensation Scheme, and which satisfies certain conditions.

Existing accumulation and maintenance trusts which satisfy the conditions for age 18-to-25 trusts (above) by 6 April 2008 will be taxed as an 18-to-25 trust.

Where settled property ceases to satisfy the conditions above, or the trustees make a disposition which reduces the value of the settled property, tax will be charged under IHTA 1984, s. 71E.

The charge will not arise where:

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