18-25 Trust
If the age condition is set at an age greater than 18, but no later than the beneficiary’s 25th birthday, the trust created as a result may be an 18-25 Trust.
These types of trust are useful for a parent who is happy for their children to inherit absolutely no later than 25. They provide parents with more flexibility than a Bereaved Minor's Trust and receive slightly more favourable IHT treatment than a Discretionary Trust. They are extremely popular for parents seeking to find a balance in terms of their children's maturity to use their inheritance wisely without unduly prolonging the distribution of their assets.
Bereaved Minor's Trust
A Bereaved Minor's Trust or BMT receives favourable tax treatment provided the child inherits from a parent and they become entitled to the trust property on or before they turn 18. There are further conditions in place to ensure that any trust property applied is only for the benefit of the child.
These types of trust are useful for a parent who has no objection to their children inheriting absolutely at 18.