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Trustees lost at sea?

I often describe trusts to new clients by reference to puppies.  A lovely idea – and a very important life time companion.  However, trusts like puppies need a lot of support, maintenance and there needs to be someone to clean up. I was pleased then to see Lindsay Pope today analogising accepting an appointment as a trustee … Continue reading

An “open letter” to the Supreme Court

Leave to appeal aspects of the Court of Appeal decision in Clayton v Clayton was granted on 19 June 2015.  Now that the initial excitement has passed this writer’s mind has turned to what the Supreme Court might decide.  With that in mind I have started to prepare a wee wish list as to the questions that I … Continue reading

Favouring beneficiaries on a lower tax rate

Inland Revenue has issued a QWBA (QB 15/11)  regarding whether a trustee exercising a discretion to distribute trustee income (that would be taxed at the trustee rate of 33% if retained by the trustee) to a beneficiary on a lower tax rate, a beneficiary with tax losses or a beneficiary to whom the income will … Continue reading

I won’t sign until I get what I want – who pays for that decision??

When a trustee is removed as a trustee of a trust; say pursuant to a power of appointment and removal of trustee; it is necessary to separately arrange for the transfer of any trust assets to the remaining and any new trustees.  However, some trustees are not happy about being removed as trustees and may … Continue reading

Update on the Review of the Law of Trusts

A new “Trusts Reference Group” has been established by Minister of Justice Amy Adams to help update and improve the law governing private trusts. Ms Adams has stated that in a media release made on 29 May 2015 that “it’s important that trust law is fit for purpose and does not create unnecessary costs.” The Trusts Reference Group … Continue reading

Bankrupt beneficiaries

Trusts are settled for many reasons.  While there is no one primary reason for settling a trust, creditor protection is perhaps the most commonly cited reason; perhaps because the settlor is carrying on a risky venture; perhaps because the settlor wishes to ward off the nebulous risks beneficiaries may incur. Which is all fine. But … Continue reading