(1)This section applies to settled property (other than property to which section 73 above applies) which is held on trusts to the like effect as those specified in section 33(1) of the M1Trustee Act 1925; and in this section “the principal beneficiary” and “the trust period” have the same meanings as in that section.
(2)For the purposes of this Act—
(a)there shall be disregarded the failure or determination, before the end of the trust period, of trusts to the like effect as those specified in paragraph (i) of the said section 33(1), and
(b)the principal beneficiary shall be treated as beneficially entitled to an interest in possession in any property which is for the time being held on trusts to the like effect as those specified in paragraph (ii) of the said section 33(1).
[F1(3)Where—
(a)settled property became held before 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925, and
(b)as a result of the failure or determination of those trusts on or after 22nd March 2006, the principal beneficiary is treated by subsection (2)(b) above as beneficially entitled to an interest in possession,
this Act shall apply in relation to that interest in possession as if the principal beneficiary became beneficially entitled to that interest in possession before 22nd March 2006.
(4)Subsection (5) below applies where—
(a)settled property becomes held on or after 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925,
(b)the interest of the principal beneficiary under those trusts is—
(i)an immediate post-death interest,
(ii)a disabled person's interest within section 89B(1)(c) or (d) below, or
(iii)a transitional serial interest, and
(c)as a result of the failure or determination of those trusts, the principal beneficiary is treated by subsection (2)(b) above as beneficially entitled to an interest in possession.
(5)This Act shall apply—
(a)as if that interest in possession were a continuation of the immediate post-death interest, disabled person's interest or transitional serial interest, and
(b)as if the immediate post-death interest, or disabled person's interest or transitional serial interest, had not come to an end on the failure or determination of the trusts.
(6)Subsection (2) above does not apply in a case where—
(a)settled property becomes held on or after 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925, and
(b)the interest of the principal beneficiary under those trusts is—
(i)not an immediate post-death interest,
(ii)not a disabled person's interest within section 89B(1)(c) or (d) below, and
(iii)not a transitional serial interest.]
Textual Amendments
F1S. 88(3)-(6) inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 24
Marginal Citations