flexible trust accumulation

[bill on line]

Dear Group

Does the law/rule of a maximum of 21 years of retention/accumulation of income apply to flexible trusts?

If the 21 accumulation rule does not apply which trust does it apply to?

Bill

[maths]

The existence of an interest in possession means that income cannot of course be accumulated.

However, were the form of the trust to subsequently change (eg to a discretionary trust) then the 21 year accumulation period would apply. It would run, however, from the date of creation of the trust not for example from the death of the life tenant.

[Lee Young]

Where the rule can apply - ie in the absence of anyduty t pay out the income, such as in an interst in possession trust - it applies to all private trusts.