(1)For the purposes of this Chapter where property is held on trusts for the benefit of a relevant minor those trusts are qualifying trusts if they are—
(a)statutory trusts for the relevant minor under sections 46 and 47(1) of the Administration of Estates Act 1925 (c. 23) (succession on intestacy and statutory trusts in favour of relatives of intestate), or
(b)trusts to which subsection (2) below applies.
(2)This subsection applies to trusts—
(a)established under the will of a deceased parent of the relevant minor, or
(b)established under the Criminal Injuries Compensation Scheme,
which secure that the conditions in subsection (3) are met.
(3)Those conditions are—
(a)that the relevant minor will, on attaining the age of 18, become absolutely entitled to the property, any income arising from it and any income that has arisen from property held on the trusts for his benefit and been accumulated before that time,
(b)that, until that time, for so long as the relevant minor is living, if any of the property is applied for the benefit of a beneficiary, it is applied for the benefit of the relevant minor, and
(c)that, until that time, for so long as the relevant minor is living, either—
(i)the relevant minor is entitled to all the income (if there is any) arising from any of the property, or
(ii)no such income may be applied for the benefit of any other person.
(4)Trusts to which subsection (2) applies are not to be treated as failing to secure that the conditions in subsection (3) are met by reason only of [F1—
(a)a power conferred on the trustees by section 32 of the Trustee Act 1925 or section 33 of the Trustee Act (Northern Ireland) 1958) (powers of advancement),
(b)a power conferred on the trustees by the law of a jurisdiction other than England and Wales or Northern Ireland which makes provision similar to the provisions specified in paragraph (a), or
(c)a power of advancement which is conferred on the trustees by the instrument creating the settlement, or by another instrument made in accordance with the terms of the settlement, and which is subject to the same restrictions as those specified in section 32(1)(a) and (c) of the Trustee Act 1925 (c. 19).]
(5)In this section “the Criminal Injuries Compensation Scheme” means—
(a)the schemes established by arrangements made under the Criminal Injuries Compensation Act 1995 (c. 53),
(b)arrangements made by the Secretary of State for compensation for criminal injuries in operation before the commencement of those schemes, or
(c)the scheme established under the Criminal Injuries (Northern Ireland) Order 2002 (S.I. 2002/796 (N.I. 1)).
Textual Amendments
F1S. 35(4)(a)-(c) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), Sch. 12 para. 48(3)(5)