Part 1 Flashcards
Who can be a beneficiary?
Individuals, charities or companies. A person under 18 who does not have capacity may be a beneficiary. Trusts can also be for unborn children. Although the trusts must vest within the perpetuity period.
What is a trust for bereaved minors?
Minor inherits from parents under the will. They will be entitled to capital absolutely when they turned 18.
Are trusts for masses and other religious purposes valid?
Yes they are recognised as a valid trust.
What happens when a trustee leaves the UK and is outside the UK for more than 12 months.
If they remain outside for 12 months then they can be replaced.
What is the express power of removal of trustees?
The trust document may have an express power to remove a trustee. This could be given to the same person who has the statutory power to appoint new trustees or could be given to one of the beneficiaries.
What kind of defence to a breach of duty can a trustee who engaged in a a self dealing claim?
If the fiduciary can show there was full disclosure of the conflict of interest or profit and the principal ( beneficiary) fully accepted and freely consented to the fiduciary’s course of action, the trustees will have a defence.
