The settlement: rights and powers under the trust
For a general definition of a trust, see IHTM16042.
Section 16 of IHTM deals largely with interest in possession trusts (IIP), where the beneficiary has the immediate right to income/enjoyment of the assets.
In contrast, if the trust is discretionary the beneficiary (or object) has only the right to be considered by the trustees if and when they distribute any income or benefits. There will usually be a class of potential beneficiaries.
The classification of the trust may be affected by
- powers of appointment
- powers of accumulation
- class of beneficiaries