Funds were held upon trust for X with the remainder (in default of exercise of the power of appointment) to his three children aged 7,5 and 2. It was beneficial for tax purposes to insert a life interest in favour of X’s surviving spouse (thereby postponing the interest of the children). An alternative would have been to make outright transfers to the children during the lifetime of X. HHJ Behrens accepted that it was not appropriate to put substantial sums on bare trust for the children given their ages and the fact that they would then have complete control of the assets at the age of 18. That was regarded as a moral hazard, and in preference to that vesting was deferred.
Behrens QC J
 EWHC 2666 (Ch)
England and Wales
Cited – Wright and Another v Gater and Others ChD 7-Nov-2011
The beneficiary, a child was to inherit estates of his grandparents and parents, all of which were intestate. An application was made to vary the provisions in order to reduce the liability to Inheritance Tax.
Held: A deferment of vesting . .
Lists of cited by and citing cases may be incomplete.
Updated: 02 June 2022; Ref: scu.261464