Trustee Powers - Private Client

Common Extensions to Powers of Trustees

• 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”

• Expand investment powers

  • 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

S.31 TA 1925

• Permits trustees to apply available income for the maintenance, education, and benefit of minor beneficiaries

• Amending: give trustees an unfettered discretion, and removing right for contingent beneficiary to receive income at age 18

  • N.B. The Inheritance and Trustees’ Powers Act 2014

• 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 limited (e.g. may only run the business with a view to sale; may only use those assets used in the business at death)

• Where appropriate, it will be necessary to extend these powers

• S.36 TA 1925: if a new trustee needs to be appointed, the choice and appointment rests with the...