Section 71A | Trusts for bereaved minors ^F1

(1)This section applies to settled property (including property settled before 22nd March 2006) if—^F1

(a)it is held on statutory trusts for the benefit of a bereaved minor under sections 46 and 47(1) of the Administration of Estates Act 1925 (succession on intestacy and statutory trusts in favour of issue of intestate), or^F1

(b)it is held on trusts for the benefit of a bereaved minor and subsection (2) below applies to the trusts,^F1

but this section does not apply to property in which a disabled person's interest subsists.

(2)This subsection applies to trusts—^F1

(a)established under the will of a deceased parent of the bereaved minor, or^F1

(b)established under the Criminal Injuries Compensation Scheme, or^F1F2

(c)established under the Victims of Overseas Terrorism Compensation Scheme,^F1F2

which secure that the conditions in subsection (3) below are met.

(3)Those conditions are—^F1

(a)that the bereaved minor, if he has not done so before attaining the age of 18, will on attaining that age become absolutely entitled to—^F1

(i)the settled property,^F1

(ii)any income arising from it, and^F1

(iii)any income that has arisen from the property held on the trusts for his benefit and been accumulated before that time,^F1

(b)that, for so long as the bereaved minor is living and under the age of 18, if any of the settled property is applied for the benefit of a beneficiary, it is applied for the benefit of the bereaved minor, and^F1

(c)that, for so long as the bereaved minor is living and under the age of 18, either—^F1

(i)the bereaved minor is entitled to all of the income (if there is any) arising from any of the settled property, or^F1

(ii)if any of the income arising from any of the settled property is applied for the benefit of a beneficiary, it is applied for the benefit of the bereaved minor.^F1F3

(4)Trusts such as are mentioned in paragraph (a) , (b) or (c) of subsection (2) above are not to be treated as failing to secure that the conditions in subsection (3) above are met by reason only of—^F1F4

(za)the trustees' having powers that enable them to apply otherwise than for the benefit of the bereaved minor amounts (whether consisting of income or capital, or both) not exceeding the annual limit,^F1F5

(a)the trustees' having the powers conferred by section 32 of the Trustee Act 1925 (powers of advancement),^F1

(b)the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by proviso (a) of subsection (1) of that section,^F1

(c)the trustees' having the powers conferred by section 33 of the Trustee Act (Northern Ireland) 1958 (corresponding provision for Northern Ireland),^F1

(d)the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by subsection (1)(a) of that section, or^F1

(e)the trustees' having powers to the like effect as the powers mentioned in any of paragraphs (a) to (d) above.^F1

(4A)For the purposes of this section and section 71B, the “annual limit” is whichever is the lower of the following amounts—^F1F6

(a)£3,000, and^F1F6

(b)3% of the amount that is the maximum value of the settled property during the period in question.^F1F6

(4B)For those purposes the annual limit applies in relation to each period of 12 months that begins on 6 April.^F1F6

(4C)The Treasury may by order made by statutory instrument—^F1F6

(a)specify circumstances in which subsection (4)(za) is, or is not, to apply in relation to a trust, and^F1F6

(b)amend the definition of “the annual limit” in subsection (4A).^F1F6

(4D)An order under subsection (4C) may—^F1F6

(a)make different provision for different cases, and^F1F6

(b)contain transitional and saving provision.^F1F6

(4E)A statutory instrument containing an order under subsection (4C) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.^F1F6

(5)In this section “the Criminal Injuries Compensation Scheme” means—^F1

(a)the schemes established by arrangements made under the Criminal Injuries Compensation Act 1995,^F1

(b)arrangements made by the Secretary of State for compensation for criminal injuries in operation before the commencement of those schemes, and^F1

(c)the scheme established under the Criminal Injuries Compensation (Northern Ireland) Order 2002.^F1

(6)The preceding provisions of this section apply in relation to Scotland as if, in subsection (2) above, before “which” there were inserted the purposes of.^F1