The fancy name set out above relates to a case from which a principle arises whereby beneficiaries to a trust can, in particular circumstances, achieve the ending of the trust with the advancement of all the capital assets of the trust to the beneficiaries.
One or more of the beneficiaries can bring a trust to an end where the beneficiaries together are entitled (that is to say, all entitled beneficiaries – in circumstances where no further future beneficiaries can be entitled) to the whole of the benefit of the trust fund and who are of full age and not under any disability (have full mental capacity). To do so, they can direct the trustees to divide the trust assets between them.
This rule will not apply if there are minors or unborn, within the express terms of the trust to be considered, however.
The individual circumstances of a trust will dictate whether there is a benefit in taking such action.
If you would like further information about the above information, please contact Stuart Grace or call the Litigation Department on 01825 762281.
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