How do trusts normally come to an end? 

Trust can come to an end in different ways, dependiong on the type of trust involved. Some examples are as follows:

Bare trust

A bare trust would normally come to an end when the beneficiary attains 18 years of age and is able to request that the assets of the trust are transferred to him or her.

Life Interest/Interest in Possession trust

These generally come to an end when the life tenant of the trust dies, although they can come to an end on the occurrence of certain events, such as a date/age being attained, the life tenant remarrying, etc.

An example might be where someone has been provided with a life interest in a property or a share of a property by their spouse through their Will.

Generally, when this life interest terminates the capital value of the asset(s) would then benefit the “remaindermen” beneficiaries such as the children involved. If this happens, then it will be necessary to report matters to the Revenue and allow the assets to then pass on to the remaindermen beneficiaries.

Discretionary trust

Normally with a discretionary trust (which can generally run for a maximum of 125 years), the trust would come to an end when all assets were appointed out to beneficiaries. When assets leave a discretionary trust it is necessary to submit an Inheritance Tax account to the Revenue as there could well be exit charges payable.

Normally assets are appointed out from a discretionary trust by way of a Deed of Appointment.