* Accumulation and Maintenance Trust
(A&M trust): a Type of discretionary trust used to benefit beneficiaries who are under the age of 25.
In recent years the "accumulation and maintenance trust
" has emerged as one of the most popular tools to give whilst still minimising tax liabilities and imposing some conditions over the use of the gift.
An Accumulation and Maintenance Trust
is a type of discretionary trust and may be used to benefit beneficiaries who are under the age of 25.
The rules apply to accumulation and maintenance trusts
and interest in possession trusts, which are generally set up by wealthy people to avoid inheritance tax.
The issue relates to Gordon Brown's announcement that he was changing the tax treatment of accumulation and maintenance trusts
and interest in possession trusts.
Before the Budget, Accumulation and Maintenance Trusts
(A&M) and Interest in Possession Trusts (IIP) benefited from favourable inheritance tax treatment.