Nobody downloaded yet

Beneficiary Interest Vs. Trustee Power - Essay Example

Comments (0) Cite this document
Summary
A trust is a concept whereby property, the subject matter of the trust, is transferred from one person the settlor to another, the trustee to hold for a specified list or class of persons, the beneficiaries…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Beneficiary Interest Vs. Trustee Power
Read TextPreview

Extract of sample "Beneficiary Interest Vs. Trustee Power"

Download file to see previous pages Trustees, having legal title to the property can exercise control over the property via the powers and rights bestowed on them by the settlor, who himself may be a beneficiary or trustee. These rights and powers arise from their office; they are to be exercised in their capacity as trustee and in the interest of beneficiaries who have beneficial ownership. With this beneficial title comes in equity, rights in respect of the trust rights themselves although not direct rights to possession of the trust property, (Law Commission 2011, P.227).These rights vary with the kind of trust created. The separation of ownership is one of the defining features of trusts .These powers pertain particularly in the trustee’s duty to invest the trust funds, duty to keep trust accounts and a duty to distribute trust assets according to the specifications of the trust. For breach of his duties, a trustee is liable for breach of trust for which the beneficiaries can sue for a money judgement. Beneficiaries have a right to due performance of the trust and to be considered. Powers of Investment The duty of investment has two major components: a duty to invest trust fund so as to be fair or even-handed between the different beneficiaries classes and a duty to invest the trust rights in such a manner as to protect them risk but also ensure reasonable returns.What amounts to investment is a matter of case law. In Re Powers, the court rejected the purchase of a house as residence for the beneficiaries as an investment because there would be no receipt of income from this. As pertains to even-handedness, the benefit of trust property is often divided into income and capital beneficiaries and it accrues as rent, dividends and so on. The guiding principle being that the character of an expense or receipt determines who bears it, hence capita for capital beneficiaries and expenses of an income nature are borne by income beneficiaries, (Penner 2008, P.275). Where such divisions cannot be made, for example where all investment is income as in cases of wasting assets or where the investment doesn’t generate any income a trustee may favour a capital over an income beneficiary or vice-versa. Courts thus impose a duty of fairness requiring the trustee to equally weigh the capital in the making of his investment decisions. As demonstrable by the New Zealand case, Re Mulligan (1998), the duty to invest is a fiduciary one and only by being even-handed can he be said to have acted in the best interests of all beneficiaries. In the case the trustee investment choice maximised the income of the life tenant but there was little capital left in the fund on her death. Interestingly, Cowan v Scargill (1985) Megarry V-C held that trustees’ refusal of an investment plan amounted to a breach in trust. The standard of prudence required is subject to reasonableness, a trustee isn’t expected to overcome the market or save the fund from declining economic woes. The higher the risk of an investment the higher the returns to it. Historically, courts favoured safer options and until recently confined trustees to fixed interest government securities despite the broadness of investment clauses as designed by the settlor of the estate. Once interpreted restrictively, investment clauses are now given their plain meaning, Re Harari’s Settlement Trust, (1949). The Trustee Act gives the legal investment in the absence of clear instructions on the settlor’s part. The law gives a trustee limited powers to delegate investment-making decisions as is the power to appoint ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Beneficiary Interest Vs. Trustee Power Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Beneficiary Interest Vs. Trustee Power Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/law/1437816-when-the-courts-are-called-upon-to-discuss-the
(Beneficiary Interest Vs. Trustee Power Essay Example | Topics and Well Written Essays - 1250 Words)
Beneficiary Interest Vs. Trustee Power Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/law/1437816-when-the-courts-are-called-upon-to-discuss-the.
“Beneficiary Interest Vs. Trustee Power Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/law/1437816-when-the-courts-are-called-upon-to-discuss-the.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Beneficiary Interest Vs. Trustee Power

Interest groups

...this century have largely understood the premise that pressure groups should be replaced with the term ‘interest groups’ because it is a more direct, positive and engaging outlook of such groups, which essentially is a good thing for the political domains of America. On the same token, the difference between the interest groups and political parties are present, yet the two remain inherently similar in their workings. The political parties nominate candidates to seek an elected office while the interest groups do not run for elections or grab any form of political power. They try to influence legislation by mobilizing the opinion of the public. Hence the public plays a...
40 Pages(10000 words)Dissertation

Land Law problem question

...trustees, under specified conditions, the power to partition the land – that is to transfer a legal estate in part of the land to each beneficiary. The consent of each beneficiary must be obtained for this (TLATA 1996, s.7(3)). TLATA 1996, s.9 gives trustees collectively the power to delegate any of their functions as trustees to certain adult beneficiaries entitled to an interest in possession; the delegation must occur by power of attorney and is subject to the duty of care under TA 2000, s.1. TLATA 1996, s.14(1) provides that any person who is a...
4 Pages(1000 words)Essay

Beneficiary of the Financial Liberalization

...focuses on the likely beneficiary/beneficiaries of financial liberalization. Some financial reforms Financial liberalization measures can comprise both internal regulations (imposed by the central banks within a country) and external regulations effected by the regional and international agencies or the regulatory agencies in foreign countries. Internal FL measures are many. One measure is the reduction of control over the interest rates charged by the financial agents (Ghosh, 2005). The financial liberalizations may involve initiatives like ‘abolishment of directed credit mechanisms, removal of ceilings on interest rates and… pursuit of price stabilisation through...
5 Pages(1250 words)Essay

Trustee and Charity Organizations

...which states that Trustees should act with integrity, and that they must avoid any personal conflicts of interest or misuse of charity funds or assets. They must avoid undertaking activities that might place the charity's endowment, funds, assets or reputation at undue risk (Section 8). Which is another clear proof that the Trustee in question has committed a violation against the organisation because he/she sits in on executive committee meetings (as a trustee) and speaks and interferes in the meeting proceedings. He/she has also been interfering and becoming involved in the day-to-day running/management of the organisation. If the Trustee has a...
4 Pages(1000 words)Assignment

Beneficiary Principle

...intended to give the said shares of stock to Joe. RSCPA is entitled to the shares in Smallco Ltd. This is in accordance with Grant's valid will, giving the rest of his estate to RSPCA, which is a registered charity. Since the state does not recognize the principle of "legitime" or "forced heirship", it is the will of the decedent that should be followed in the distribution of estate. By virtue of this provision in Grant's will which gives effect to the principle of residuary devises, all monies and properties of Grant that did not pass to some particular beneficiaries shall be given to RSPCA. c.) Grant's telephone conversation with Tom during his lifetime regarding the trust has no legal effect whatsoever. A mere...
4 Pages(1000 words)Case Study

Knowledge vs. Power

...Knowledge Vs Power Knowledge and human power are synonymous, since the ignorance of the cause frustrates the effect. -------------- Francis Bacon The above lines have been quotes from Aphorism III of the great philosopher Francis Bacon. We find more than one instance in his writing where he stresses on the importance of knowledge with respect to the human life. In his famous Latin work “Treatise--De Hoeresiis”, Bacon points out that “Knowledge too, is itself a power.” There have been other authors who have also tried to point out the same thing in different contexts. When we think about knowledge, the first component that comes to our mind is information. When we...
7 Pages(1750 words)Essay

Human vs. Animals - Who Has The Power

... which they used to denote as the forbidden land was actually a desert which they had never exploited. Knowledge is power and Zaius knows it better than anyone, he snubs Taylor and his theory because he could as he knows that the oppressed can regain the humanity and overcome their condition to be treated as inferiors to the apes. That is why the balance of power hangs with the Apes, who now control the humans, though there was a kind of coerciveness in their status, which is normal with the conqueror. As he who conquers makes others respects only his policies. The apes not only use power to control the humans but also to keep balance and status quo in their sub-dived society, and in order to prove it as a fact the courts presided... . Later...
13 Pages(3250 words)Research Paper

Self interest rightly understood VS altruism

... Self-Interest Rightly Understood VS Altruism The thesis of the essay is the need for Americans to combat selfishness through the altruistic belief in self-interest. Although every man should have their own self-interest and private life, there is the need to do pursue such interests in a virtuous manner that does not affect the endeavors of other citizens. Everyone can learn and retain the principle of self-interest rightly understood and master the belief in and practice of unbiased and altruistic concern for the welfare of others. Altruism necessitates people to sacrifice their time and resources to assist other Americans. One important point of self-interest rightly understood and altruism is the concept of private life... , in which...
1 Pages(250 words)Essay

Interest Groups

...Interest groups Interest groups promote specific issues or positions, which enable them to take a non-partisan approach to politics. Political parties on the other hand, must have a generally unified view on politics even though all its members may not agree on details. Political parties field candidates that are drawn from their party for elective posts. Interest groups support any political party or candidate that favors or promotes their issue or position as far as legislature or governance is concerned. Interest groups serve as an important check and balance to political power as they serve as a representative of public opinion. Politicians are well...
1 Pages(250 words)Essay

Morality vs. Rational Self-Interest

...Morality vs. Rational Self-Interest Rational self-interest and morality are like two different sides of the same coin. Without rational self-interest, morality would have no place in the society. On the other hand, without morality in the social system, self-interest would additionally be predestined. Morality is a good thing. Immorality, on the other hand, is a deviant behavior. A person in his or her rational self-interest and drive should always do good things and avoid bad things at all costs. People do behave immorally though immorality is not encouraged at any given social institution. This means that an immoral behavior, as...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Beneficiary Interest Vs. Trustee Power for FREE!

Contact Us