Contingent assets meaning

See Q&A: If a Will creates a trust for minor beneficiaries (contingent on them attaining the age of 18), is the sole trustee appointed in the Will able to retire and appoint just one replacement trustee or are at least two trustees required? This Q&A proceeds on the basis that the intended sole trustee is not a trust corporation. From the query, it seems the Will names a lone trustee to hold trust assets for minor beneficiaries, with entitlement contingent on each reaching the age of 18. There are several potential obstacles to appointing a single trustee, or circumstances where doing so is impractical, one of which is the wording of the trust instrument itself (which, on the face of it, is the Will here, unless the legacy is expressed to be to the trustees of an existing trust). The position will vary depending upon the trust’s terms...

In this issue: Funding and investment Scheme governance Pension scams and liberation Daily and weekly news alerts Dates for your diary Trackers Funding and investment TPR publishes revised employer covenant guidance to align with new DB funding code of practice The Pensions Regulator (TPR) has at last issued revised guidance on the employer covenant for trustees overseeing defined benefit (DB) pension schemes, to align with its new DB funding code of practice, which took effect on 12 November 2024 under the Pensions Act 2004 (Code of Practice) (Defined Benefit Funding) Appointed Day Order 2024 (SI 2024/1143). Described by TPR as ‘the last piece of the jigsaw to help schemes carry out valuations under the new DB funding code’, the update introduces the first regulatory definition of employer covenant, intended to deliver greater market certainty and foster consistency between schemes. Notable changes cover cash flow analysis, tests of reasonable affordability, maximum affordable contributions, reliability periods, covenant longevity, and...

SM v MM and others [2024] EWFC 463 SM v MM (No 2) [2025] EWFC 244 SM v MM (No 3) [2025] EWFC 245 What are the practical implications of this case? A judicial conclusion that a trust is a sham is exceedingly uncommon in divorce proceedings. Here, it came after the husband consistently asserted that a trust said to have been created in Cyprus in 2007 by his father with professional trustees was a standard, legitimate discretionary arrangement for the benefit of the parties’ two children. He argued it owned just one asset: the single issued share in a holding company, with the underlying trading businesses managed by wholly independent third parties. The wife’s case was that the trust was a sham and that the assets within it, valued at about £38m, were in truth controlled and beneficially owned by the husband. The initial hearing extended to roughly 12 days, during which live testimony was received from 29 witnesses...

Variation of Will or intestacy after death—Q&As An instrument of variation can be used to alter how a deceased person’s estate is distributed under a Will or on intestacy. It is commonly executed by deed. To secure effectiveness—typically to obtain favourable inheritance tax (IHT) and capital gains tax (CGT) treatment under section 142 of the Inheritance Tax Act 1984 (IHTA 1984) and section 62(6) of the Taxation of Chargeable Gains Act 1992 (TCGA 1992)—certain formalities must be met. These include that the deed is in writing, contains the requisite statement applying the statutory provisions, is not made for any extraneous consideration, and is signed by all relevant parties, including the deceased’s personal representatives (PRs) where additional tax would otherwise arise. For guidance on deeds of variation, see Practice Note: Variation of Will or intestacy after death. See also Practice Note: Post-death rearrangements. Compliance with these requirements will usually deliver the intended IHT and CGT position. The formalities for execution of variation should be followed accordingly. Precedent deed of variation...

The properties held by a company can be obtained by two routes: an acquisition of assets owned by the company (an asset purchase), or an acquisition of the company’s shares (a share purchase) Asset purchase On an asset purchase: the buyer takes the undertaking as a going concern and may select which elements of the business, together with any assets and liabilities, it wishes to take on every property owned, used or occupied by the undertaking must be conveyed, assigned or transferred to the purchaser within the sale documents Properties may be sold outright, or the buyer may be granted a fresh lease. Where a leasehold interest is involved (whether already existing or newly created), particular issues arise. For more information, see Practice Note: Leasehold property issues arising on an asset purchase. The properties will be identified in the sale agreement and it is the property interests themselves that are transferred, rather than the company’s...

This Practice Note outlines green loans and the principal considerations when preparing a green loan agreement. It centres on the Green Loan Principles (GLP) issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA)... Clarifies the meaning of a green loan Introduces the GLP and the accompanying GLP guidance Sets out the four core components of a green loan under the GLP and summarises the related guidance Condenses GLP and GLP guidance on what qualifies as a green loan, on reviews, and on greenwashing risks Provides sources for precedent wording, including the Loan Market Association draft provisions, plus drafting pointers What is meant by a green loan? Under the GLP, green loans encompass any form of loan instrument and/or contingent facility (for example, bonding lines, guarantee lines or letters of credit) where the proceeds, or an equivalent amount, are applied solely to fund, re-finance or guarantee, in...

1 Definitions Insert defined terms into the Share Purchase Agreement, including: Accounts Date; Business Day; Buyer; CA 2006; Company; Completion; Completion Date; Conditions; Contractor; Disclosure Letter; Employee; Employment Legislation; former; holding company; Sale Shares; Seller; Subsidiaries and subsidiary; TULRCA; TUPE; Warranties; and Worker... 2 Employment Directors: Listed in the Disclosure Letter; no others held out. Employees, Workers and Contractors: The Disclosure Letter gives anonymised terms, benefits, scheme eligibility and absences; contracts and policies annexed; work is exclusive; no return rights, pending offers, restrictive obligations, post‑Accounts Date changes, promised increases, or flexible requests; no hybrid arrangements offered or under negotiation. Termination: All roles terminable on three months or less without extra liability; no notices; Completion creates no rights or payments; no contractual redundancy scheme. Liabilities and payments: No termination payments promised; no contingent liabilities; consultation duties complied with; only routine pay, expenses and holiday due. Disputes and disciplinary: No EHRC enquiries, union disputes, claims, live disciplinary/capability/grievance cases, or unanswered Equality Act questions....

1 Nil Rate Band Discretionary Trust If my [ insert spouse details ] survives me, I direct my trustees to set aside either: the maximum sum or assets on which no inheritance tax arises on my death, as trustees judge; or such lesser assets or cash as they decide. This forms the “Discretionary Trust Fund” for any of: my [ insert spouse details ], my children and their issue, any trust created for the benefit of any of them, whether of income, capital or discretionary nature (each a “Beneficiary”). In shares the trustees determine by minute. The trustees may by minute award legacies, residue shares, income interests or future/contingent rights in all or part of the fund, including income accumulation, capital vesting, powers to appoint income or capital, and their discretion. Subject to that, they may accumulate income to capital during any permitted period, or (after that period shall) apply all income...