Differences between estates and trusts

Note particularly the following differences between estates and trusts:—

1. Estate: on the death of a testator or an intestate, all assets, including income accrued up to the date of death, are capital: income arising after death is income.

2. Trust:

• On the death of a life tenant under a settlement, if followed by a remainderman, all income up to the date of death belongs to the life tenant's estate:income arising after the death of the life tenant, together with the assets of the trust, is due to the remainderman;
• On the death of a life tenant under a settlement who is succeeded by a further life tenant, income accrued up to the death of the former life tenant is due to his estate: income accruing after his death is due to the succeeding life tenant.