Discretionary trust Accumulation period/income question

[bill on line]

Discretionary trust Accumulation period/income question
Dear Group

After the accumulation period has ended on a discretionary trust governed by UK law, with UK trustees.
What has to happen to any income? Does all the income have to be payed to the beneficiaries on a discretionary basis? Or can the trustees keep some or all of the income within the trust.

I am not sure if maximum accumulation period can be decided when drafting the trust document e.g. 80 years maximum perpetuity period for lifetime trust.
Or law specifies the maximum accumulation period

Thank you in advance
Iain

[Lee Young]

The maximum accumulation period is 21 years from when the trust was established.

After the end of that period all the income must be paid out (none can be retained) but the trustees still retain the discretion over to whom among the beneficiaries it is paid. It can also be used to pay usual income expenses.