Administrative Clauses Flashcards
Investments
Trustees Act 1925 & 2000 trustees are personally liable for any major losses, but are entitled to make investments as if they are absolutely entitled . they must take personal advice and review the investments
Insurance
Trustees act gives trustees the power to insure trust property against all risk of loss or damage
Appropriation
s41 AEA trustees can transfer assets to satisfy a beneficiary.
Business - selling
A PR can run the testators business with a view to it being sold
Business - passing to testators children
Needs clause to include
Power to run the business for as long as PR thinks fit
Power to use assets other than those in use at death
Indemnify PR’s against personal Liability
Power to employ staff and mangers to run the business
Guardians
Children under 18 need a Guardian, if there are no surviving parents.
Parental Responsiblity
Any person with parental responsibility will assume responsibility for any child under 18 and this will cancel out any Guardian appointed
Receipts
Payment of income or capital should be allowed by a clause, The clause should state the parent/Guardian can give a valid receipt on behalf of the beneficiary.
Maintenance
S31 TA - Trustees can use the income from the estate for the reasonable maintenance/education/benefit of the child any surplus must be invested
S8 Inheritance and Trustees powers act 2014 ( ITPA 2014)
Trustees can pay out income as they see fit - gives complete discretion to the trustee
Advancement
S32 TA allows trustees to pay capital to a beneficiary before they are entitled to the fund to allow the beneficiary to buy items for the advancement/benefit of the child upto 50% of the capital
Advancement ITPA 2014
now allows for the whole of the trust to be advanced and allow the trustee to excise wider discretion
Charging
TA 2000 provides that a professional executor is entitled to charge fees for professional services.
