What did the Trustee Act 2000 do?
The Act covers five areas of trust law: the duty of care imposed upon trustees, trustees’ power of investment, the power to appoint nominees and agents, the power to acquire land, and the power to receive remuneration for work done as a trustee.
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 are the standard investment criteria?
The standard investment criteria means that, when selecting an investment, the trustees must consider: (a) suitability to the trust; and (b) whether to diversify so far as it is appropriate to the circumstances of the trust.
Does the Trustee Act 2000 protect beneficiaries?
Part I (sections 1-2) of the Act introduces a new safeguard for beneficiaries in the form of a statutory duty of care which will apply to trustees in the exercise of their new wider powers under the Act.
What does section 31 of the trustee Act mean?
31 Power to apply income for maintenance and to accumulate surplus income during a minority.
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.
What can a trustee invest in?
Most modern trusts give trustees wide investment powers allowing them to invest in any type of investment. They still have to take into account the goals of the trust and what is considered prudent. This will include investments in life assurance products, unit trusts, OEICs, shares, deposits and property.
Do trustees have to invest?
It is a fundamental duty of trustees to invest the trust fund so that the beneficiaries’ interests (whether in terms of income or capital appreciation) are enhanced. The duty of the trustees in relation to investment is to use their powers in the best interests of current and future beneficiaries.
What are the rights of beneficiary?
All beneficiaries of Trust have the right to payment as set forth in the document of the trust. It is mandatory for trustee’s and author’s to make sure that the beneficiary receives whatever payment is legally supposed to be given to the beneficiary. Beneficiary has the right to receive all profits.
Who holds the real power in a trust the trustee or the beneficiary?
A trust is a legal arrangement through which one person, called a “settlor” or “grantor,” gives assets to another person (or an institution, such as a bank or law firm), called a “trustee.” The trustee holds legal title to the assets for another person, called a “beneficiary.” The rights of a trust beneficiary depend …
What are step provisions in a will?
The STEP provisions give your executors and trustees more choice over how they manage gifts you leave to children. For smaller gifts, it can be sensible to pay the money (or entrust an item) to the child’s parent or guardian and let them look after it, rather than having your executor become a long-term trustee.