18.2.1 Bereaved minor trusts

Finance Act 2006 introduced a new category of ‘trusts for bereaved minors’ (IHTA 1984, s. 71A). To qualify as a bereaved minor trust and be excluded from the relevant property regime:

the trust must be created by the parent of the minor beneficiary;

the trust must come into existence on the parent’s death – either under the intestacy rules or under the terms of the parent’s will; and

the terms of the trust must give the beneficiary unconditional entitlement to capital by the age of 18.

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