What is Section 31 of the Trustee Act 1925?

What is Section 31 of the Trustee Act 1925?

31 Power to apply income for maintenance and to accumulate surplus income during a minority.

What is s31 trustee Act?

Trustee power to apply and accumulate income: section 31 of Trustee Act 1925. by Practical Law Private Client. 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.

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.

Is the Trustee Act 1925 still in force?

Trustee Act 1925 is up to date with all changes known to be in force on or before 06 June 2022. There are changes that may be brought into force at a future date.

What is Section 32 of the Trustee Act 1925?

Section 32 allows capital money to be paid to a beneficiary entitled at a future date even though their interest could be ‘diminished by the increase of the class to which he belongs’. The capital Tom has already received will be taken into account when he receives the balance of his (diminished) entitlement.

Do trustees have to act jointly?

Trustees have duties in relation to the payment of outgoings from the capital and income of the Trust respectively. Trustees have a duty to exercise reasonable care. Trustees have a duty to act jointly where more than one (and subject to the specific provisions of the Trust).

Is the Trustee Act 1925 repealed?

Many sections of the Trustee Act 1925 were repealed by the Trustee Act 2000. However, two significant section that remain in force today are ss. 31 and 32.

What power does a trustee of a will have UK?

Trustees are under a duty to provide clear and accurate accounts and produce any information, or other documents relating to the trust when required to do so by a beneficiary. To exercise reasonable care and ensure the correct distribution of assets.

What are the powers of a trustee?

What Power Does a Trustee Have Over a Trust

  • Buying and selling of Assets.
  • Determining distributions to the beneficiaries under the trust instrument.
  • Hiring and firing advisors.
  • Making income distributions.
  • Power to lease.
  • Power to Administer the Trust.
  • Duty to defend the Trust.
  • Duty to Report.

Can trustees act alone?

Can a co-trustee act alone? The answer to this is No unless the Trust document states otherwise. In the case where the Trust does not explicitly state, the Trustee and the co-trustee should make all decisions unanimously to push the trust administration process forward.

Can a trustee be a beneficiary of a trust UK?

Can A Trustee Be A Beneficiary? Yes – although in the interests of the trust, it’s good practice to ensure: There’s no conflict of interest between someone’s role as a trustee and their position as beneficiary. At least one trustee is a non-beneficiary.

What happens if trustees don’t agree?

If the trustees cannot agree how to decide a matter on which they have discretion then one option is to apply to the Court. Court applications must be a last resort, and there are potentially personal financial implications for any trustees involved in such an application.

What rights does a trustee of a will have?

The Trustees become responsible for receiving the inheritance from the estate on behalf of the Trust. Cash or assets are held by the Trustee in accordance with the terms of the Will, until the Trust is brought to an end by the delivery of the cash or assets to the ultimate intended beneficiaries.

What powers do trustees have?

However, a trustee will normally be given the following powers:

  • investment;
  • dealing with land;
  • delegation to agents, nominees and custodians;
  • insurance;
  • remuneration for professional trustees;
  • advancement of capital;
  • maintenance of minor beneficiaries;
  • to pay, transfer or lend funds to beneficiaries.

What rights does a trust beneficiary have against his trustee UK?

beneficiaries are entitled to see legal advice provided it is paid for by the trust fund. beneficiaries may not see legal advice relating to trustees’ disputes with beneficiaries; and. if trustees have a controlling shareholding in a company then company documents may be subject to disclosure.