Q&As

Can a trust of which the beneficiaries are disabled minors qualify as a vulnerable beneficiary trust for tax purposes?

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Produced in partnership with Lynne Counsell of Addington Chambers
Published on: 21 May 2018
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Vulnerable Beneficiary trusts

There are two types of vulnerable beneficiary trusts:

  1. •

    trusts for bereaved Minors. Under section 71C of the Inheritance tax Act 1984 (IHTA 1984), a ‘bereaved minor’ means a person who has not yet attained the age of 18 and at least one of whose parents has died

  2. •

    trusts for disabled persons as referred to in IHTA 1984, s 89 and 89B. For these purposes, a disabled person is someone who is incapable of managing their property or affairs within the meaning of the Mental Health Act 1983 or who is eligible for any of the following benefits (even if they do not receive them):

    1. ◦

      attendance allowance (either the care component at the middle or highest rate, or the

Lynne Counsell
Lynne Counsell

Barrister, Addington Chambers

Lynne has been in traditional Chancery practice for some thirty years, specialising in probate matters, construction of wills and trusts and also financial services and drafting.

Lynne was for some years counsel for Tower Hamlets, representing them on landlord and tenant cases and counsel for Bedford Building Society representing it on mortgage cases.

Lynne has written or updated over fifty books, including writing the initial volume of Atkin’s Court Forms “Financial Services” and updating Halsbury’s Laws on Injunctions. Lynne was also co-author of two editions of “Insider Trading” and co-editor and one of the writers of “Chancery Practice and Procedure.”

Articles include “Marketing of Investments” for the Law Society Gazette and “The Doctrine of Mutual Wills” for the Trust Quarterly Review. Lynne won one of the few cases on mutual wills in the last fifty years – Charles v Fraser (2010).

Lynne has drafted the standard unit trust for the government of Nigeria, the rules and related documentation for various building societies and clubs, shareholder agreements, company takeovers compliance documentation for certain banks as well as wills and trusts.

Lynne was awarded the 2017 Corporate international Magazine Global Award – “Investment Contracts Barrister of the Year in England”.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Minor definition
What does Minor mean?

A person who is under the age of eighteen.

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