TSEM1034 - Introduction to trusts: whether a bare or simple trust: example 2 – not a bare trust

Mr B left the residue of his estate to ‘such of my grandchildren as survive me and attain age 21years’. If any grandchild dies before age 21, his/her prospective share goes to the other grandchildren who do attain that age.

Here there are two conditions to be met before the grandchildren become entitled to their shares in the estate: -

• they must survive Mr B; and
• they must attain age 21 years

Here the grandchildren did not take immediate vested interests at the death of the testator. This is not a bare trust and the trustees must make a tax return.