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This will have a fundamental effect on the tax position for accumulation and maintenance trusts, which have been widely used as an effective vehicle to support and accumulate income for minors, subject to their receiving at least a life interest in the trust by age 25. Another option is to transfer the property into an accumulation and maintenance trust for the benefit of your grandchildren but you must not retain a right to use the property or there could be tax consequences. This increase affects discretionary and accumulation and maintenance trusts: the tax treatment of interest in possession trusts is unchanged. |
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