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.