In the United Kingdom, the 10-yearly inheritance tax charge may be payable on assets transferred into this type of trust on or after 22 March 2006.
Typically, a surviving spouse will be granted by the settlor a right to the income of the trust and/or a right to remain in the family home for the remainder of their life.
When the surviving spouse dies, the rest of the fund (the remainder) may pass to the couple's children or other named persons.
The Duchy of Cornwall is the legal owner of large land holdings in the United Kingdom and owns financial investments.
It is then under its exceptional statutory and quasi-statutory terms revested on the future Duke of Cornwall, which means it is not subject to the rule against perpetuities.