Power of Trustees - Power of Maintenance - Section 31 of the Trustee Act 1925 and Vested Interests
3 important questions on Power of Trustees - Power of Maintenance - Section 31 of the Trustee Act 1925 and Vested Interests
What should the trustees do with the trust income while the beneficiary is under 18 where the interest is vested (not conditional to a certain age)?
Hold onto trust income until the beneficiary reaches 18 when he can give a good receipt.
How does section 8 of the Inheritance and Trustees' Powers Act 2014 amend section 31 of the Trustee Act 1925 for trusts created or arising after 1 October 2014?
The trustees can apply the whole or any part of the trust income as they see fit as opposed to a reasonable amount in s. 31(1) which means trustees do not have to consider the age of the infant or other income available to them.
What must the trustee do with the any residual income under section 31(2) of the Trust Act 1925?
The trustee must invest any income not used and the income produced by them should only be used for the maintenance, education, and benefit while the beneficiary is under 18 (section 31(2))
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