Trustees' Powers of Maintenance & Advancement

Question 1

When can a trustee use trust income to pay for the maintenance, education and benefit of beneficiaries under 18?

Answer 1

When they have either vested or contingent interest, and there are not any others with prior interests to the income, e.g. life tenants

Question 2

To who can trustees pay the income for the minor?

Answer 2

To their parent / guardian, or directly to maintenance, education or benefit provider

Question 3

What are adult beneficiaries entitled to from the trust?

Answer 3

Trust income as it arises - trustees must pay that income to them, pending the vesting of their beneficial interests

Question 4

What value of the trust capital can trustees advance for the beneficiary’s benefit on trusts created after 1 October 2014?

Answer 4

Amount not exceeding beneficiary’s entitlement?

Question 5

What value of the trust capital can trustees advance for the beneficiary’s benefit on trusts created before 1 October 2014?

Answer 5

Up to half the beneficiary’s entitlements