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HMRC internal manual

Trusts, Settlements and Estates Manual

Legal background to trusts and estates: Scottish law: conditions attached to a legacy

‘In life at the time of my death’

This means the beneficiaries have to be alive when the testator dies. They have a vested interest (TSEM6210). During the administration period each has an absolute interest in the residue (TSEM6114). After the administration period, each beneficiary is absolutely entitled to income and capital.

Sometimes the will instructs the trustees to retain control until beneficiaries reach a specified age. The ‘trust’ is a bare or simple trust (TSEM6272). The beneficiaries will be able to demand payment when they are of age.

‘Such as survive me, and attain age…’ or

‘Such as are in life when the eldest attains age… and who subsequently attain age…’

The beneficiaries will not have a vested interest (TSEM6210) until they satisfy all the conditions. Usually the will instructs the trustees what to do with the income until then.They may be required to pay it all out. Or they may have the discretion whether to pay or accumulate. This determines whether ICTA88/S686 applies to the trust.