Trusts

Question 1

Who can be a beneficiary?

Answer 1

Any one, including organisations and charities, over the age of 18 and with sound mind.

An individual under the age of 18 can also be a beneficiary but they will need a trustee.

Trusts can also be for unborn children but the trust must vest within the applicable perpetuity period.

Question 2

Are trusts for masses and other religious purposes considered valid?

Answer 2

Yes.

Question 3

What happens when a trustee leaves the UK and remains outside of the UK for more than 12 months?

Answer 3

Under s 36(1) TA 1925, they can be replaced as trustee after 12 months outside of the UK.

Question 4

What is the express power of removal of trustees?

Answer 4

This power can be given to another trustee, or a beneficiary and will be set out in the Will

Question 5

What kind of defence to breach of duty can a trustee who engaged in self-dealing claim?

Answer 5

If the fiduciary (The trustee) can show that there was full disclosure of the conflict of interest or profit and that the beneficiary fully accepted and freely consent to the fiduciary’s actions, the trustee will have a defence.

Question 6

What is meant b