Applying Income and Capital for Minors
From October 2014 after the Inheritance & Trustees’ Powers Act 2014 comes into effect, Trustees can apply income to minors for their education and benefit using their discretion as opposed to the current objective rule of reasonableness.
Current provisions allowing Trustees to advance capital to minors for their advancement and benefit has been amended to include transferring capital to minors which may simplify some transactions. The statutory proviso that only half the prospective capital can be advanced remains in place unless amended in the Trust Document.
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