Court approves trust period extension to 125 years
Since 2010, new trusts can run for up to 125 years. Trusts established before 6 April 2010 were generally limited to 80 years and more importantly income could only be accumulated within the trust for up to 21 years.
The trustees of a pre-2010 trust can extend the trust and accumulation periods to 125 years by applying to the Court for an Order under the Variation of Trusts Act 1958.
The recent case of Allfrey appears to be the first published case confirming a Court exercising its discretion in this way, and contains very useful reassurance that this will not trigger a disposal for capital gains tax purposes.’
Solicitors Ipswich Suffolk – for more information on our range of legal services, please contact us on 01473 611211.