Accumulation and maintenance trusts
Trusts for growing beneficiaries
Accumulation and maintenance (A and M) trusts were designed to allow trustees to grow capital until young beneficiaries reach a defined age or milestone, at which point income or assets vest automatically. They remain highly relevant for school fees, university funding, and timed inheritances, even after the Finance Act 2006 moved most A&M trusts into the “relevant property” regime. Imperium’s first step is a holistic review of your family’s goals: how much flexibility do trustees need, when should control pass, and what events could disrupt the original plan? With that insight we draft or amend deeds, establish robust investment mandates, and register the trust while ensuring guardians understand their stewardship duties.
Our ongoing service pairs rigorous compliance with proactive guidance. We record all trustee resolutions, monitor accumulation versus maintenance expenditure. As beneficiaries approach vesting age we facilitate family meetings, explain tax consequences of different distribution options, and arrange asset transfers or deed variations where circumstances have changed. The result is a structured, flexible pathway that turns today’s capital into tomorrow’s opportunity – without unpleasant tax surprises.
Why Imperium is different
Accumulation and Maintenance trusts thrive on disciplined growth and smooth vesting. We set strategies that match the deed, register the trust and model ten-year and exit charges so liquidity is always ready. As vesting approaches we run family meetings, outline tax impacts and execute appointments or variations where life has moved on. Integrated tax and accounting support turns the A and M framework into a reliable bridge between generations.
Typical client scenarios
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Grandparents funding grandchildren’s university costs through gradual accumulation.
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Parents timing asset vesting at age 25 to encourage financial maturity.
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Families deferring inheritance until beneficiaries complete professional qualifications.
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Frequently asked questions
Who controls an A and M trust?
Trustees exercise full control until beneficiaries reach the age or event specified in the deed. They may accumulate income or apply it for maintenance, education, or benefit as deemed appropriate.
What happens when a beneficiary reaches vesting age?
The trust may convert automatically to a fixed interest arrangement or distribute outright. We calculate tax consequences, update the Trust Registration Service, and coordinate asset transfer.
How are income and gains taxed?
Trustees pay trust rates on undistributed income and gains. We prepare returns, reclaim basic-rate credits where possible, and advise on allocation strategies to minimise overall liability.
Can additions be made after settlement?
Additional assets may trigger fresh IHT entry charges. We assess each contribution, alert trustees to potential costs, and handle the necessary reporting.
Are A and M trusts still effective after the FA 2006 changes?
Post-2006, most A and M trusts fall within the relevant property regime, attracting ten-year charges. Nevertheless, they remain valuable for controlling access and timing. We model charges and suggest deed revisions where beneficial.
How frequently should the deed be reviewed?
We recommend triennial reviews or sooner if family circumstances or legislation change, ensuring terms remain suitable and compliant.
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