A child is inheriting some money from his Grandmother who died intestate. There will be a statutory trust set up. Could anyone explain who sets up this trust and how the son’s mother can apply to be a trustee or if that is possible? Thank you.
Arabella Legard
Apex
This is dealt with in sec 42 Administration of Estates Act 1925; the personal representatives have power to appoint the trustees, and they may appoint themselves. The mother may ask them if she can be considered for appointment as a trustee, but it is in their discretion
There is nothing to prevent the mother being appointed as a trustee, but as far as I know she has no preferential right. Indeed, in some circumstances, she might be considered to have a conflict of interest, but I believe she should as a matter of good practice be consulted about the exercise of any discretionary powers under sec 31 Trustee Act.
Under the statutory trust the minor beneficiary does not have a vested right until attaining 18, so I doubt if she can exert any parental right to control of the money, as might be the case if the gift was vested and the trustees were holding on a bare trust.
Tim Gibbons