I5.1017 Person becoming absolutely entitled to settled property
Occasions of absolute entitlement
The main occasions when a person becomes absolutely entitled to trust property as against the trustees include when1:
• a settlement ends after a specific period
• the trustees exercise a power of advancement or appointment to release capital to a beneficiary
• a contingency occurs, such as a particular birthday or marriage
• the beneficiaries agree to terminate the settlement
• a life interest terminates (see I5.1021)
The person becoming absolutely entitled against the trustee need not necessarily do so as a beneficiary. In Hoare Trustees v Gardner2 trustees of a settlement, in exercise of a special power of appointment, advanced property from that settlement to be held by themselves as trustees of a second settlement. It was held that in their capacity as trustees of the second settlement they had become absolutely entitled to the property as against the trustees of the first settlement (see I5.1019).
Meaning of absolutely entitled
When a person becomes absolutely entitled to trust property as against the trustee, they have the right to direct how that asset shall be dealt with, subject only to satisfying any outstanding charge, lien or other right of the trustees to resort to the asset for payment of duty, taxes, costs or other outgoings3.
This means that effectively4:
• the trustee has no control over the property except with that person's permission, or
• that person can take complete control over the property either immediately or on
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