INTEREST IN POSSESSION

An interest in possession trust is where one or more beneficiaries, the life tenant(s), are entitled as of right (usually throughout their lifetime) to the trust’s income as it arises, save to the extent that it is not used to meet any expenses of the trustees or outgoings which are due and payable out of income. The trustees usually have discretion over the payment of trust capital throughout the period an interest in the trust’s income persists and on termination of any right to such income, the trust’s income (or a proportion thereof) may pass to another beneficiary for a given period and ultimately on the termination of such interests in the trust’s income, the trust capital reverts to what are termed the reversionary beneficiaries, i.e. those parties identified as the remaining members of the class of beneficiaries.

Crossman Trust Company Limited PO Box 1, Portland House, Station Road, Ballasalla, Isle of Man, IM99 6AB, British Islands. Telephone: +44 (0)1624 825805 or 822816, Fax: +44 (0)1624 824570, E-Mail: mail@crossmantrust.com