Self-test questions: Trustee Powers of Maintenance, Advancement and the Variation of Trusts

. In whose favour can the trustees exercise their power of maintenance?

. From what trust property is any payment under the power of advancement made?

. From what trust property is any payment under the power of maintenance made?

. For trusts created after 2014, when can the trustees exercise their power of maintenance?

. Which of the following will not be entitled to an intermediate income, and so have no right to the power of maintenance?

. When can a trustee exercise their powers of advancement?

. What share of the beneficiaries' interest could be advanced for trusts created prior to 2014?

. What share of the beneficiaries' interest can be advanced for trusts created after 2014?

. According to Lord Ratcliff in Pilkington v IRC, what must any advancement achieve for the beneficiary?

. Should the beneficiaries elect to utilise the rule in Saunders v Vautier, what happens to the trust and/or the trust assets?

. Which of the following beneficiaries are unable to utilise the rule in Saunders v Vautier?

. Which of the following is not a ground of jurisdiction for a court to exercise its inherent jurisdiction to a vary the terms of a trust?

. According to Chapman v Chapman, in whose favour can the court exercise its inherent jurisdiction and vary the terms of a trust in instances where a compromise have been proposed?

. On whose behalf can the court not consent to a variation of trust under s1 Variation of Trusts Act 1958?

. Under ss1(1)(a)-(c) Variations of Trust Act 1958, what must a variation of trust achieve?

. In whose favour can the trustees exercise their power of advancement?

. Romeo is a 7-year-old child, and his parents recently passed away. They left their assets on trust for Romeo, but made no provision in their wills that Romeo would receive any income from the trust as it was presumed they would not pass away until he was at least 30. Can his trustees potentially exercise the power of maintenance in his favour?

. Although Romeo was not left an income under his parents' wills, his grandparents (who are now his guardians) have decided to provide him with an annual income of £24,563 a year. Will Romeo's trustees still potentially be able to exercise the power of maintenance in his favour?

. Marlena has a contingent interest in a trust fund, but has not been given any rights to the trust income. She is 17. Can the trustees make available the trust income to her under their powers of maintenance?

. Virgo has a life interest in the dividend payments from some shares, and the remainder passes to his niece once he dies. His niece is currently 12, and has no income after her parents passed away. Can the trustees exercise their powers of maintenance in favour of Virgo's niece?

. Gurpreet is the beneficiary of a trust, but is not entitled to the property until she turns 45. The trust was created in 1999, and she is now 30. How much can the trustees advance to Gurpreet?

. Maximillian is the beneficiary of a trust, but is not entitled to the property until he turns 34. The trust was created in 2017, and he is now 21. How much can the trustees advance to Maximillian?

. Chaim is the beneficiary of a trust and wishes to have his trustees advance him 75% of his beneficial interest. He wishes to use 50% of the moneys to buy a canal boat, and 50% to give to a local hospice which he passes once a day but which he has no other affiliation with. Will the trustees likely be able to advance the moneys requested?

. Johann is in dispute with his trustees - he wishes to vary the terms of the trust so that he can receive his beneficial entitlement immediately, where as his trustees only wish to vary the terms so that he will receive his beneficial interest at the age of 40 (in ten years' time). Will a court be able to vary the terms under the rule set out in Chapman v Chapman?

. Tina and Maria are 45 and Eleanor is 16. All are beneficiaries of a trust and wish to vary the terms of the trust. Whose approval will the beneficiaries need to achieve the variation?

. Heather is the beneficiary of a trust. She is 17. The trustees wish to vary the terms so as to remove a forfeiture clause that should she marry any individual who is not a member of the Church of the Flying Spaghetti Monster, she will forfeit her life interest. Can the court consent to the variation?

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