Dispositive powers definition

View the related practice notes about Dispositive powers

Trustees—duties

Nature of dutiesThe difference between a duty and a power is:•the performance of a duty is obligatory•powers are to a greater or lesser degree discretionary in natureThe nature of a trustee's duty towards a beneficiary is fiduciary.The court will not normally compel the exercise of a power against the trustee's wishes but it will compel performance of such powers attached to a trust as are of the nature of a trust or obligation, as stated in McPhail v Doulton:'Where duty and power are coupled the court can compel the trustees to perform the duty.'A trustee who fails to carry out their duties will be in breach of trust.Trust propertyThe common law dutyA trustee must enquire as to the trust property, take control of it and thereafter ensure its preservation:•where there is more than one trustee, title to trust property must be vested in the joint names of all of them•if any part of the trust property is outstanding, the trustees must press for payment or the transfer of the property...

Trustees—power of advancement

The trustees are under a duty to manage the trust fund as to both income and capital until the beneficiary reaches the vesting age.Note that on 27 February 2023 the Marriage and Civil Partnership (Minimum Age) Act 2022 came into force meaning that on or after this date it is not possible for a person to marry or enter into a civil partnership under the age of 18 in England and Wales. See News Analysis: Marriage and Civil Partnership (Minimum Age) Act 2022—implications for trusts.Statutory power or express powerA power of advancement may be either statutory, under section 32 of the Trustee Act 1925 (TA 1925) or express through provision in the trust instrument. It is a fiduciary and dispositive power, allowing a trustee to bring forward (advance) a beneficiary's entitlement under the trust.TA 1925, s 32 will be implied into every trust, subject to being excluded by contrary intention and subject to some limited exclusions.The statutory power used to provide that:“Trustees may at any time or times pay or...

View the related precedents about Dispositive powers

Will—unmarried, divorced, separated with children, no partner

Will—unmarried, divorced, separated with children, no partner FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission review of Wills has issued a final report on 16 May 2025 which includes in volume II a draft bill to replace the Wills Act 1837. For information on these changes, including draft legislation published, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime. Finance Act 2025 (FA 2025) which received Royal Assent on 20 March 2025, implements legislation to abolish the remittance basis of taxation and replace it with a residence-based regime, commencing on 6 April 2025. FA 2025 also replaces domicile as the key factor in establishing liability to inheritance tax. Other changes include amendment of the rules determining excluded property status, the abolition of protected settlements status of offshore trusts, and changes to overseas workday relief. For information on these changes, see Practice Notes:...

Will—for unmarried couple with children using discretionary trust

Will—for unmarried couple with children using discretionary trust FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission review of Wills has issued a final report on 16 May 2025 which includes in volume II a draft bill to replace the Wills Act 1837. For information on these changes, including draft legislation published, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: draft Bill for a new Wills Act. 1 Revocation I [full name of testator] of [address of testator] revoke all former testamentary dispositions made by me [to the extent that and so far only as they affect my property of every kind in the United Kingdom of Great Britain and Northern Ireland] and declare this to be my last Will. [I also revoke all previous appointments of guardians of my minor children made by me before the date of this Will.] 2 [ Territorial scope, declaration of domicile and choice of law 2.1 [This Will shall affect only my...

View the related q&as about Dispositive powers

Where a trust holds shares in a company, is it necessary to list all the trustees in the relevant incorporation documents or statutory registers?

Where a trust holds shares in a company, is it necessary to list all the trustees in the relevant incorporation documents or statutory registers? When referencing the ‘holding’ of company shares by a trust, it is primarily noted that a trust, not being a legal entity, cannot be registered as the owner of the shares. For example, as regards the register of members, section 126 of the Companies Act 2006 (CA 2006) is clear that…‘no notice of any trust, expressed, implied or constructive, shall be entered on the register of members of a company registered in England and Wales or Northern Ireland, or be receivable by the registrar.’ Therefore the names of one or more of the trustees should be entered on the relevant documentation. As well as the register of members this would apply to the incorporation documents, eg Form IN01, which requires, among other things, details of initial shareholdings and subscribers. As to the issue of whether such documentation requires more than one, or indeed all, of the...

Can a beneficiary under a discretionary trust exclude themselves as a potential beneficiary (as opposed to the trustee removing them from the list of beneficiaries)? If so, is there a precedent for this?

Can a beneficiary under a discretionary trust exclude themselves as a potential beneficiary (as opposed to the trustee removing them from the list of beneficiaries)? If so, is there a precedent for this? Discretionary objects of powers under a trust have limited rights. Although they may not have any rights in the trust assets, they have the right in personam to ensure that the trustees exercises their administrative and dispositive powers in accordance with the terms of the trust. A discretionary beneficiary can

View the related News about Dispositive powers

LCIA Arbitration Rules 2020—a heavier touch?

Arbitration analysis: Following our initial coverage of the release of the London Court of International Arbitration’s (LCIA’s) 2020 edition of its Arbitration Rules, which enter into force on 1 October 2020 (the LCIA Rules 2020), this analysis considers some of the rule changes which have practical implications for the commencement and conduct of LCIA arbitrations. On the one hand, the LCIA Rules 2020 have been brought up to date with some pragmatic and user-friendly innovations, such as new provisions for electronic communications, electronic signing of arbitration awards, virtual hearings, and early disposal of unmeritorious claims. On the other hand, the LCIA Court has assumed new powers, which may not be welcomed by all parties who had been attracted by the LCIA’s ‘light touch’ approach to administration. The LCIA Court’s jurisdiction will now extend to deciding how a Request for Arbitration (Request) should be delivered, allowing a claimant to amend its Request, permitting composite Requests, and ordering consolidation of arbitrations.