Trust will and residuary gift for grandchildren...help!

thatwilldonicely

I've had sight of a Will with Trust and Grant of probate but having trouble interpreting it. Can anyone help me please. 
It says" the trustees shall hold the capital and income of the trust fund for such of my grandchildren as shall be living on the survivorship date and attain the age of 25 years before the end of the trust period, or shall be living under that age at the end of the trust period and if m ore than one in equal shares absolutely. "   
Also " If  any Grandchild of my mine shall die prior to the Survivorship Date or before attaining a vested interest leaving issue who shall be living on the Survivorship Date and attain the age of25 years before the end of the Trust Period or be under that age and living at the end of the Trust Period, then such issue shall take the share  of the Trust Fund which such child would have taken had that child been living on the Survivorship Date and attained a vested interest. If there shall be more than one of such issue they shall take in equal shares per stirpes, so that no one shall take a share if any of that person's ascendant is alive and takes a share."
What does this mean for the grandchildren in layman's terms please? TIA

Keep_pedalling

I an no expert on trusts but it seems none gets anything until they all reach 25 or at the end of the trust period. If you are a trustee then the testator has left you with the headache of managing a trust for many years (unless the GC are all nearing 25).

In your shoes I would take professional advice, especially if we are talking a lot of money. How much is the trust receiving? 

thatwilldonicely

Thank you for your reply. I didn't interpret it as they all had to reach 25 so that's a new take to consider.

poseidon1

thatwilldonicely said:

I've had sight of a Will with Trust and Grant of probate but having trouble interpreting it. Can anyone help me please. 
It says" the trustees shall hold the capital and income of the trust fund for such of my grandchildren as shall be living on the survivorship date and attain the age of 25 years before the end of the trust period, or shall be living under that age at the end of the trust period and if m ore than one in equal shares absolutely. "   
Also " If  any Grandchild of my mine shall die prior to the Survivorship Date or before attaining a vested interest leaving issue who shall be living on the Survivorship Date and attain the age of25 years before the end of the Trust Period or be under that age and living at the end of the Trust Period, then such issue shall take the share  of the Trust Fund which such child would have taken had that child been living on the Survivorship Date and attained a vested interest. If there shall be more than one of such issue they shall take in equal shares per stirpes, so that no one shall take a share if any of that person's ascendant is alive and takes a share."
What does this mean for the grandchildren in layman's terms please? TIA

A real headache of a trust arrangement and a burden for the trustees.

Specifically :

* No grandchild has a right to capital or income of the trust until they attain age 25.

* Should a grandchild fail to attain age 25, their presumptive share passes to any child/children they may have, but that child also has to survive to the vesting age of 25.

There are unfortunate potential tax consequences of this ill considered arrangement. Any income of trust during the accumulation period is liable to trust income tax at 45%.  If the trust is invested to produce capital gains, realised gains are subject to CGT at 24% subject to trustees exemption of £1500. As for IHT there maybe exposure to inheritance tax at the 10th anniversary of the trust, since the trust does NOT (edit) seem to qualify for the more favoured status of an 18 to 25 settlement.

As indicated, this is an particularly irksome arrangement especially if the total amount held in trust is modest.

I would also be concerned that the beneficial class may be open ended and allow for new grandchildren born after the death of the testator. In this regard is the 'Survivorship Date' defined elsewhere in the Will?

As advised, you are going to need specialist advice from a  STEP qualified lawyer. As for future trust investment, I would suggest avoiding income generating investments, due to the 45% trust income tax exposure. 

Keep_pedalling

How old are the GC now?