| Commentary

64 Settled advances

| Commentary

64 Settled advances1

The power to advance capital is commonly used to give capital to a beneficiary absolutely. There are no formalities required for the exercise of the statutory power2. However, the power is increasingly used to postpone a beneficiary’s entitlement to capital if that is considered to be for his benefit. Normally this will be by the making of a ‘settled advance’3.

In Pilkington v IRC4 HM Revenue and Customs objected that such a settled advance was ‘nothing less than a resettlement’ and argued that a power of advancement cannot be used so as to alter or vary the trusts

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