Does anybody know of any decisions made regards the above. I have a client, who has had her childrens allowance removed because the child has over 3,000 held in trust until 18. I need to know if any decision like this has ever been overturned and under what circumstances. The child and mother (Executor)have no acccess to this money, apart from administering the trust itself and for it to have such an impact on the families income seems absurd and extremely harsh!

A lot will depend on the terms of the trust itself. If the mother is a trustee then she has legal title to the trust object and can apply the trust object as she and other trustees (if any) think appropriate within the terms of the trust.

If the terms of the trust forbid the trustees from applying the trust object immediately to the beneficiary then the beneficiary can only have a future interest in the trust object and the dependent's addition should be payable.

For relevant caselaw on trusts see the annotations to Reg 46 of the IS Gen Regs.

Hope this helps
Paul

Paul

Thanks for the info, its extremely helpful. I will now look into the relevant case law to see what can be done regards appeals.

Thanks again!

Stephen