Accumulation and maintenance trusts
This type of trust is designed principally for the
benefit of minors. It has a particular application in the context
of UK inheritance tax planning. It is usual for income to be
accumulated by the Trustees for a fixed period, normally expiring
on a Beneficiary's 25th birthday. During this time payments may be
made for education and maintenance purposes.
At the end of the accumulation period income may be made
available on fixed terms to the relevant Beneficiaries with the
capital being transferred at a later date, often at the discretion
of the Trustees.