What is Section 31 and 32 of the Trustee Act 1925?
Sections 31 and 32 TA 1925 respectively set out the trustees’ powers to apply the income and capital of trust property. They are of particular relevance to minor beneficiaries.
What is Section 31 of the Trustee Act 1925?
Trustee power to apply and accumulate income: section 31 of Trustee Act 1925. A practice note explaining that section 31 of the Trustee Act 1925, known as the statutory power of maintenance, gives trustees powers and duties in relation to trust income.
How much can trustees advance?
Prior to 2014 the law provided the power to trustees to advance up to half of a beneficiary’s entitlement. In 2014 The Inheritance ad Trustees’ Powers Act removed the one half limit allowing trustees to exercise their discretion and if they consider it appropriate, advance the entirety of a beneficiary’s entitlement.
What are the statutory powers of trustee?
Statutory powers of a trustee They are (i) power to sell; (ii) power to sell under special circumstances; (iii) power to convey; (iv) power to vary investments; (v) power to apply property of minors, etc., for their maintenance; (vi) power to give receipts; and (vii) power to compound.
Can one trustee act alone?
Worse yet, under the default rules of California Trust law, co-trustees must act unanimously if they are to act at all. This means that one Trustee cannot simply break a deadlock by acting on his own. One of the Co-Trustees does not have the power and authority to act alone.
Can a trustee override a will?
A will and a trust are separate legal documents that typically share a common goal of facilitating a unified estate plan. Since revocable trusts become operative before the will takes effect at death, the trust takes precedence over the will, when there are discrepancies between the two.
Can a trustee have power of appointment?
There is no specific language needed to create a general power of appointment. The trustee just has to make sure that the exercise of the power is unrestricted. An inter vivos power of appointment must be exercised during the donee’s life. The testamentary power of appointment must be exercised by the donee’s will.
What is the statutory power of maintenance?
The statutory power of maintenance is provided by s31 TA 1925. This gives trustees powers and duties in relation to trust income. Unamended, this covers powers to apply and accumulate income for beneficiaries under 18, as well as a duty to pay trust income to a beneficiary over 18.
Why are sections 31 and 32 Trustee Act 1925 necessary?
Sections 31 & 32 apply as default provisions and are essential because of the statutory trusts which can arise on intestacy i.e. where there is no express trust deed to cover how income and capital is to be managed. Apparently they reflected common practice in the drafting of trusts at the time.
When does section 32 of Ta 1925 apply?
2 When section 32 of TA 1925 applies. Section 32 applies to beneficiaries with interests in capital. Examples of when section 32 applies. Examples of when section 32 does not apply. 3 Trustees must apply capital for beneficiary’s advancement or benefit. Trustees can apply money or trust assets. 4 Restrictions on section 32 of TA 1925.
What does S.31 of the Trust ACT mean?
S. 31 relates to the income of the trust fund and, inter alia, it enables the trustees to make payments from the income for the maintenance, education or benefit of infant beneficiaries.
What was the purpose of the Trustee Act 1999?
An Act to amend and consolidate the law relating to trustees and trust property; to amend in certain respects the law relating to executors and administrators; to amend the Wills, Probate and Administration Act 1898 and certain other Acts; and for purposes connected therewith. pt 1A, hdg: Ins 1999 No 31, Sch 5.110 .