Equity LG/WS 12 - running a trust: giving B access to trust fund, varying trust provision

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  • Created by: Emma13
  • Created on: 23-06-18 21:36
What does s32 Trustee Act 1925 establish?
Power of advancement - T'ee have power to pay/apply trust capital for a b's advancement/ benefit before he is entitled to receive the capital under the terms of trust
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What must the beneficiary have to obtain the power of advancement?
Trustees may advance capital to or for a beneficiary who has an interest in trust capital
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What must the power of advancement be in aid of?
Can’t hand over if not for their advancement or benefit
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What did Pilkinton establish?
‘any use of money which will improve the material situation of the beneficiaries’ Permitted under s32 = advancement/benefit
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What did Re Pauling establish?
Not for b's advancement or benefit but for paying off mothers debts
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What does s9 Inheritance and Trustee Powers Act establish?
The advancement must not exceed the beneficiary’s entitlement - trust created after 1st Oct 2014
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What happens if a trust is created before 1st Oct 2014?
If the trust was created before 1st October 2014 when the ITPA 2014 came into force, any advancement(s) must not exceed half the beneficiary's entitlement. under s32
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Will the advancement be taken into account?
The advancement is taken into account when the beneficiary becomes absolutely entitled
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With the power of advancement who needs to consent?
Any beneficiary with a prior interest must be an adult and give written consent for the advancement
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Can the power of advancement be varied?
The trust instrument may vary the power
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What does s31 TA 1925 establish?
While the beneficiary entitled to income is an infant, s31 TA 1925 gives trustees the power to apply trust income for the beneficiary’s maintenance, education or benefit
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With infant b's are any factors taken into consideration?
The amount which is applied must be reasonable having regard to the beneficiary’s age, requirements and other income
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What does s8 Inheritance and Trustee Powers Act established?
S8 ITPA 2014 removes the above restriction for trusts created after 1st October 2014. (factors for infant b's)
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What are t'ee duty regarding income?
The trustees have a duty to accumulate any income not so applied Accumulate income can be used for the beneficiary’s maintenance, education or benefit in future years.
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What happens to contingent trusts where the b is entitled to income?
Period when under 18 Trustees may use full amount for maintenance, education or benefit each year
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What did Saunder v Vautier establish?
If all the b's (including any with potential interest in the trust) Are in existence Aged 18 or more and have full mental capacity + unanimously agree + can end the trust and insist that the t'ee transfer the trust property to them/new t'ee on dif tr
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What does Variation of Trust Act 1958 establish?
Persons for whom the court can give consent Court can consent to variation of trust on behalf of certain types of beneficiaries who cannot consent themselves.
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What does s1(1) VTA Establish?
Where property, whether real or personal is held on trust… the court may if it thinks fit by order approve on behalf of-...
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What does s1(1)(a) VTA establish?
Infant B who lacks capacity
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What does s1(1)(b) VTA establish?
Any B who may become entitled
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What does s1(1)(c) VTA establish?
Unborn b's
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What does s1(1)(d) VTA establish?
Adult b's who are in existence but cant consent
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When will the court not consent?
The court shall not approve an arrangement on behalf of a person unless it is for that person’s benefit.
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What did Re Holt’s Settlement 1969 establish?
Courts won’t consent to variation if they think they are giving a beneficiary too much too young, more than they can cope with - not in their interests
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What did Re Weston’s Settlement 1969 establish?
Lord Denning “many things in life worth more than money” - moral
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What did Ridgewell 2007 establish?
The court might be influenced by a discernible moral or social benefit.
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What did Re Balls establish?
If the proposed arrangement changes the whole substratum of the trust, it is not a variation. A proposed arrangement can still be regarded as a variation if it leaves the substratum intact but effects the purpose of the trust by other means.
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When are the relevance of the settlors intentions relevant?
Settlor's intentions may only be relevant to whether court should approve if intention to relate to the beneficiaries for whom court is being asked to consent under VTA.
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What did Goulding v James establish?
COA approved to variation - it guaranteed some funds for unborn beneficiaries.
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What does s57 Trustee Act 1925 establish?
Where the trustees do not have power to effect an act in the administration or management of the trust, they can apply to the court under s57 TA 1925 for the necessary power which the court will grant if ‘expedient’.
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What did Turner establish?
Trustees are under a duty to consider whether to exercise discretion Trustees have to choose and think for selves.
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Can b's dictate how t'ee exercise discretion?
Beneficiaries cannot dictate how trustees should exercise their discretion
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What did Re Beloved Wilks establish?
No duty to give reasons
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What did Re Londonderry establish?
Investment - T’s have duty to invest but discretion as to how Discretionary trust = no duty to give reasons
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What did Scott v National Trust establish?
Duty to give reasons if reasonable expectations to give reasons - obiter
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What did Schmidt establish?
Beneficiaries (and the objects of a power of appointment) have a right to apply to the court for disclosure of trust documents as part of the inherent jurisdiction of the courts to supervise the administration of the trust.
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What will the court take into account when asked to order disclosure?
In considering whether to order disclosure, the court will balance the competing interests of different beneficiaries, the trustees and third parties.
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What did Ackland establish?
Confidential e.g minuted of trustees meeting discussing exercise of discretion, settlors letter of wishes Unconfidential e.g trust account, schedule of trust investment
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Other cards in this set

Card 2

Front

What must the beneficiary have to obtain the power of advancement?

Back

Trustees may advance capital to or for a beneficiary who has an interest in trust capital

Card 3

Front

What must the power of advancement be in aid of?

Back

Preview of the front of card 3

Card 4

Front

What did Pilkinton establish?

Back

Preview of the front of card 4

Card 5

Front

What did Re Pauling establish?

Back

Preview of the front of card 5
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