What is section 31 Trustee Act 1925?

Trustee power to apply and accumulate income: section 31 of Trustee Act 1925. A practice note explaining that section 31 of the Trustee Act 1925, known as the statutory power of maintenance, gives trustees powers and duties in relation to trust income.

What is Section 31 and 32 of the Trustee Act 1925?

Sections 31 & 32 apply as default provisions and are essential because of the statutory trusts which can arise on intestacy i.e. where there is no express trust deed to cover how income and capital is to be managed. Apparently they reflected common practice in the drafting of trusts at the time.

What does section 32 Trustee Act 1925 mean?

advance capital
Under section 32 of Trustee Act 1925 it is possible for trustees to advance capital onto beneficiaries. Unless the Will expressly provides, trustees can only advance half of the beneficiary’s share onto them. This point is often varied in Wills. Monies can be advanced on and even put into a new trust.

Is the Trustee Act 1925 still in force?

Many sections of the Trustee Act 1925 were repealed by the Trustee Act 2000. However, two significant section that remain in force today are ss. 31 and 32.

Do trustees have to act jointly?

They must act jointly and unanimously with all the trustees unless the trust deed allows for delegation of this duty. The Trustee Act 1925 (NSW) also covers conditions of appointment of agents to the trust. When a trust has multiple trustees the decision making process of the trustees must be joint and unanimous.

What is Section 41 of the Administration of Estates Act 1925?

Personal representatives have a statutory power of appropriation (contained in section 41 of the Administration of Estates Act 1925), which enables them to appropriate any part of the deceased’s estate in satisfaction of any legacy, or share of the residuary estate, provided it does not prejudice any beneficiary.

Can a trustee override a will?

A will and a trust are separate legal documents that typically share a common goal of facilitating a unified estate plan. Since revocable trusts become operative before the will takes effect at death, the trust takes precedence over the will, when there are discrepancies between the two.

What power does a trustee have?

All trustees have the power to manage trust assets. This may include the sale and purchase of trust property and making investments. The trustee must decide whether to use its power to manage assets on a case-by-case basis and must only consider relevant factors when deciding to exercise any power.

Can a trustee be remunerated?

Trustees can be paid for their time and trouble in performing their duties only if the trust specifically provides for payment. However, not all trustees are remunerated for their role.

Who can act as a trustee?

Who can be a trustee? A trustee, the person who manages the money and assets in a trust, can be almost anyone. A grantor appoints a trustee when they create the trust. In many cases, the person who creates a revocable living trust, also known as the grantor, settlor, or trustor serves as trustee.

Do co trustees have to agree?

The default rule in California is that co-trustees must act unanimously. In California, unlike most states, co-trustees must make administration decisions by unanimous consent.

What is Section 55 of the Administration of Estates Act 1925?

Under section 55(1)(x), Administration of Estates Act 1925, personal chattels were defined as ‘carriages, horses, stable furniture and effects, motor cars and accessories, garden effects, domestic animals, plate, plated articles, linen, china, glass, books, pictures, prints, furniture, jewellery, articles of house or …