Commentary

I5.135 Trustees acting outside their powers

IHT, trusts and estates

I5.135 Trustees acting outside their powers

I5.135 Trustees acting outside their powers

Many occasions of IHT charge on settled property arise from exercises by trustees of their fiduciary powers. Such occasions of charge are more common in relation to discretionary trusts. If trustees exercise a power but fail to satisfy all the requirements for its exercise their actions may be void or voidable as a matter of trust law, and, if so, will probably not give rise to an IHT charge either.

An illustration of this is the Scottish case of Stenhouse's Trustees1. In that case the trustees had an express power to advance or apply capital

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