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Wills, trusts and estates
Part of the common law series
Wills
Legal history of wills Joint wills and mutual wills Will contract · Codicil Holographic will · Oral will
Sections Attestation clause Residuary clause Incorporation by reference
Contest Testamentary capacity Undue influence Insane delusion · Fraud No-contest clause
Property disposition Lapse and anti-lapse Ademption · Abatement Satisfaction of legacies Acts of independent significance Elective share · Pretermitted heir Wills and conflict of laws
Trusts
Express · Resulting Constructive
Common types Bare · Discretionary Accumulation and Maintenance Interest in possession Charitable · Purpose · Incentive
Other types Protective · Spendthrift Life insurance · Remainder Life interest Reversionary interest Testamentary Honorary · Asset-protection Special needs (Supplemental Needs)
Governing doctrines Pour-over will Cy-près doctrine Trusts and conflict of laws
Estate administration
Intestacy · Testator · Probate Power of appointment Simultaneous death · Slayer rule Laughing heir · Advancement Disclaimer of interest · Inheritance tax
Related topics
Advance directive (Living will) Totten trust
Other common law areas
Contract · Tort · Property Criminal law · Evidence
v • d • e

Accumulation & Maintenance ("A&M") trusts are a type of discretionary trust for the benefit of children and young people in England and Wales.

[edit] Development and tax treatment

• The concept of an A&M trust emerged in England and Wales after the enactment of the Capital Taxes Act 1974 (CTA). The CTA discouraged the use of discretionary trusts by introducing new tax rules, but it made a specific exception for trusts designed to help young people (under the age of 25).
• This particular type of trust grew in significance over the years and became known as an Accumulation & Maintenance Trust. They came to fall under the purview of s.71 Inheritance Tax Act 1984 (IHTA), which continued their special tax treatment
• The Finance Act 2006 took A&M Trusts out of the purview of s.71. Today, A&M Trusts are governed by Pt. III, Ch. III IHTA, and therefore receive exactly the same tax treatment as other types of discretionary trusts.
• As a result, the use of A&M trusts is declining rapidly.
• The new breed of "18-25" trusts are taking their place.