A client has asked me what clause 12.5 means. It says: “Clause 12.3 does not prejudice any right of any Person to follow property or income into the hands of any Person, other than a purchaser, who may have received it”. The guidance notes do not seem to shed any light on this particular sub-clause so can anyone explain what it means and who would have this right?
Harriet Murray
Gedye & Sons
Trustees may, for instance, mistakenly transfer trust property to the wrong beneficiary. Standard provision clause 12.3 provides (in short) that the trustees are not liable if they have acted in accordance with the advice of Counsel. But standard provision clause 12.5 means that the true owner can still pursue their claim against the property in the hands of the beneficiary who wrongly received it. The same wording is used in clause 23.
The wording is based on s.27 Trustee Act 1925, which has often been adopted in later statutes, see for instance s.72 Adoption & Children Act 2002, s.17 Gender Recognition Act 2004.
The interest which this client shows in the smaller details of their will is commendable.
James Kessler QC
15 Old Square
Lincoln’s Inn.