accumulation and maintenance trust
A trust established under section 71 of the Inheritance Tax Act 1984 which has certain tax advantages where there are young children. The beneficiaries must generally attain an interest in the income or capital of the trust fund by the time they reach 25, but until they reach age 18 the trustees can choose whether trust income should be applied for the benefit of the beneficiaries or accumulated for later distribution. They are similar to discretionary trusts except that the beneficiary must obtain an interest in the trust income or capital no later than his attaining age 25.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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