My clients are the Trustees of a Will Trust which gives a surviving spouse a Life Interest in the Residuary Estate. The Will Trust is subject to Trustees overriding powers allowing the Trustees to appoint capital within the Trust Fund to beneficiaries other than the Surviving Spouse. The Trustees are resolved to exercise their Overriding Powers such that Capital comprised in the Trust Fund is appointed to adult beneficiaries of the wider Will Trust. The surviving spouses consent is not required to this. Will the exercise of the Overriding Powers constitute a ‘Potentially Exempt Transfer’ even though the surviving spouses consent is not sought.
Mandy Kelly
Actons