Trustee powers of maintenance + advancement

Question 1

When MAY trustees pay trust income to beneficiaries under 18?

Answer 1

• no contrary provision in trust declaration,
• minor has interest in income,
• there are no prior interests in income

Question 2

When MUST trustees pay trust income to beneficiaries?

Answer 2

If beneficiary adult (must pay any income between turning 18 and interest vesting)

Question 3

When MAY trustees pay trust capital to beneficiaries?

Answer 3

• no contrary provision in trust declaration,
• beneficiary has interest in income,
• payment must be for beneficiary’s advancement/benefit,
• if there’s another beneficiary with a prior interest, his written consent is obtained

Question 4

How much capital can be advanced to beneficiary?

Answer 4

If trust made before 1.10.2014, max. 50% of his entitlement
If trust made after 1.10.2014, 100% of his entitlement

Question 5

Documents beneficiaries are entitled to see

Answer 5

• document that created trust,
• trust accounts, and
• any documents showing trust property invested (eg. schedule of investments)

Question 6

Documents beneficiaries cannot demand to see

Answer 6

Any document showing trustees’ reasoning on the use of their powers (eg. minutes of meetings, letters of settlor’s wishes…)
BUT: beneficiaries can apply to court if wish to see them