| Commentary

60 Power of maintenance

| Commentary

K: MAINTENANCE AND ADVANCEMENT

60 Power of maintenance

Section 31 of the Trustee Act 1925 is implied into all settlements and will trusts, unless excluded, and affects the rights of beneficiaries to income. As the tax treatment of settlements often depends on whether or not beneficiaries have a right to income, the Section has important tax implications1. Subject to prior interests, Section 31 applies where a contingent gift carries with it the right to intermediate income, and where a minor has a vested interest in income.

Where Section 31 applies, the trustees have a discretion until the child’s 18th birthday to apply

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