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Trustee Powers Notes

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Powers of TrusteesCommon Extensions to

TRUSTEE POWERS
Administrative Provisions - statutory provisions contained in Trustee Acts 1925 & 2000
Examples:
 Wide investment powers in Part II TA 2000 - s.3

s.4 - consider suitability and diversification

s.5 - take advice from a competent person "unless they decide this is inappropriate or unnecessary in the circumstances"
Power to
 Expand investment powers
Invest

common to expand to enable widest possible investment, including in foreign and non-income-producing assets

extend power to purchase a property for investment or occupation to include power to purchase/improve property and to impose conditions regarding occupation
Power to
 S.8 TA 2000 - power to buy freehold/leasehold property for occupation by a beneficiary
Purchase a
 Extension only needed if further powers are required
House
S.31 TA 1925
 Permits trustees to apply available income for the maintenance, education, and benefit of minor beneficiaries
Power of
 Amending: give trustees an unfettered discretion, and removing right for contingent beneficiary to receive income at age 18
Maintenance

N.B. The Inheritance and Trustees' Powers Act 2014
S.32 TA 1925
 Permits trustees to apply capital for the advancement or benefit of the person with a vested or contingent interest in the capital
 Consider excluding some or all of the limitations imposed by s.32
 All capital may be advanced (up to the limit of B's share) and it will be deducted from B's share
Power of
 Must get the consent from the person with the prior interest (ex-person with life interest)
Advancement
 Amending: can remove the s.32 power or allow trustees to only advance a limited amount of capital or dispense with consent

Could amend as s.32 gives no power to make advancements or loans to life tenants

N.B. The Inheritance and Trustees' Powers Act 2014
Power to Run
 Where the estate includes a business that was run by the deceased as a sole trader, the powers of the PRs to run that business are
Deceased's limited (e.g. may only run the business with a view to sale; may only use those assets used in the business at death)
Business
 Where appropriate, it will be necessary to extend these powers
 Advisable to exclude:
o the rules for apportionment of income contained in Apportionment Act 1870 and Howe v Lord Dartmouth (1820)
Apportionment
Rules

the rule for apportionment of debts in Allhusen v Whittell
 This is no longer necessary since The Trusts (Capital and Income) 2013

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