Law of Wills and Succession: Chap3- Administrative Clauses Flashcards
Which Act lays down the extent of the powers of executors?
The Trustee Act 1925 and Trustee Act 2000
What are the 2 difficulties of relying on the provisions in the TA 1925 and TA 2000?
1) bureaucratic
2) too restrictive to reflect the wishes of T
What does the TA 1925 and TA 2000 set out re Intestacy?
Sets out powers of administrators of intestate estates where they act as trustees on behalf of child beneficiaries
True or False: Under TA 2000, the Trustees have extensive powers granted to buy freehold or leasehold land in the UK as an investment for the occupation of a beneficiary or for any other reason.
True
What does s19 TA 1925 do?
Gives trustees the power to insure trust property against all risks of loss or damage.
What does s41 AEA 1925 enable PRs to do?
enables them to transfer assets from the estate to satisfy a beneficiary, also known as appropriation.
What should a clause in a will re a business include?
1) a power to run the business for as long as the PRs think fit
2) a power to use assets other than those in use at death
3) an indemnity which would state that the PRs would not be personally liable for any losses arising from the running of the business
4) a power to employ staff and managers to run the business
What does the inclusion of a receipt clause do?
It discharges the PRs from any further liability as far as that particular gift is concerned.
Who can receive a minor beneficiary’s inheritance when a receipt clause is included?
A minors parent or guardian
What can trustees do under s31 of TA 1925?
When holding property for a minor, Trustees can use income from the estate’s assets for the maintenance, education and benefit of the minor. Surplus income that is not used must be accumulated (invested so it will produce income for future use).
What change does s8 Inheritance and Trustees Powers Act 2014 implement?
Providing trustees can demonstrate they have genuinely considered the matter, trustees now have very extensive discretion regarding the distribution of income.
Before the ITPA 2014 came into force, what was common wording used by will writers re maintenance?
“Income be paid only if it was reasonable, with complete discretion of the trustees”.
What does s32 TA 1925 allow trustees to do?
Advance capital to a beneficiary before they are entitled to the trust fund to allow a beneficiary to buy a car.
Before the ITPA 2014, how was s32 extended by a clause in the will?
1) the whole of the vested or contingent share to be advanced
2) the trustees to exercise a wider discretion
Under S9 ITPA 2014, how much can be paid out to a beneficiary before they become absolutely entitled?
the whole of the fund
