Hello,
Ever since I read this Lesley King article I haven’t, as they say, been able to unsee it.
I’ve attached the following in which it is said Deeds of Appointments aren’t generally used to transfer trust funds free of the trust.
Aren’t these Powers of Appointment commonly used to appoint on Bare Trust, using a Deed of Appointment?
Thank you in advance for any forthcoming reassurance!
I believe what Lesley King is saying is that a standard power of appointment cannot be used to transfer assets out of the original trust to an entirely different trust. An express power to transfer assets to another trust is usually needed for that to happen. By contrast, an appointment onto bare trusts is simply a modification of the terms of the existing trust, and would be possible under the power quoted.
I’m not sure, but is the point here that the power is not itself used to transfer assets out of the trust. It is very common as you say to appoint a ‘bare’ trust of assets but the transfer of assets is still a separate supplemental exercise.
Paul Davies
Clarke Willmott LLP
