CG37510 - Absolute entitlement: part of trust fund: successive events

It is common for a will or deed to provide that the settled property shall not vest in beneficiaries absolutely on a single occasion, but in stages as and when particular events (`contingencies’) occur.

A simple example is where it provides that the property is held in trust for such of A B and C as shall reach the age of 25 or being younger shall marry, and if more than one in equal shares. When A reaches the age of 25 he has an absolute vested interest and normally can call upon the trustees to hand over a third share of the property. When B marries at 23 she too can call for a half share of what is left. Finally when C reaches 25 he can call for the balance. If on the other hand C died before reaching 25, but after A and B had absolute interests, then A and B would be entitled to divide C’s share between themselves, but would not have to wait until what would have been C’s 25th birthday.

The other most common example is where a will or deed gives several named individuals a life interest, and provides that on each individual’s death their share passes absolutely to their children, if they have any, but otherwise is added to the other shares. This basically was the situation in Crowe v Appleby, see CG37540.