The specific powers of trustees
Article Abstract:
Trusts are established to hold assets for the later benefit of people who cannot claim rights over these assets until time requirements have been met. Trustees are therefore responsible for ensuring the assets are available at the time of transfer, and for maintenance and advancement payments to eventual beneficiaries, within the guidelines established by the trust. Statutory maintenance and advancement responsibilities of trustees under British law are discussed, without regard to specific trust instruments. The discussion includes citations of sections of the Trustee Act of 1925. Under British law, trustees can provide maintenance benefits only from the current-year earnings of the trust, and can advance beneficiaries a maximum of 50 percent of current trust capital.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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The appointment and retirement of trustees
Article Abstract:
The hypothetical establishment of a trust for the benefit of grandchildren upon attaining their majority (age 18) is examined from both an accounting and a legal standpoint. Trusts may be of two types: inter vivos (established during the benefactor's life time) or by will and testament. Appointment of trustees, failure to appoint trustees, and inability of trustees designated to act as required by law are analyzed, using a question and answer format. Under British law, the maximum number of trustees that can be appointed is four (in most cases) and the minimum number of trustees appointed is one. Subsequent appointment of trustees following the establishment of the trust and the rights and responsibilities of trustees are detailed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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