I7.544 Property becoming comprised in maintenance funds
Property can be exempt on becoming comprised in a maintenance fund as a result of a transfer by an individual or a company1, or on leaving a settlement with an interest in possession2, or on ceasing to be relevant property3.
It may sometimes be difficult to arrange matters so that property comprised in an ordinary private settlement can go into a maintenance fund. It might be necessary where minors or unborn persons have an actual or potential interest under the settlement to obtain an order from the court under the Variation of Trusts Act 1958. Sometimes there will be powers which can be exercised in order to transfer the settled property to a maintenance fund.
In Raikes v Lygon4 the court was asked to determine whether a power conferred by a settlement to effect transactions which could have been authorised by the court under Settled Land Act 1925, s 64 permitted the trustees to transfer property to a maintenance fund for the maintenance of a historic property which was itself comprised in the settlement. Settled Land Act 1925, s 64 permits transactions which are for the benefit of the beneficiaries or the settled land. The beneficiaries under the trusts of the proposed maintenance fund would of necessity (see I7.542) include beneficiaries, such as charity or national museums, who were not beneficiaries under the existing settlement. However, the court held that the tax advantages of maintaining the settled land in this way would justify the proposed