I have an estate where 40% of the estate (around £310,000) passes to great grandchildren. There are 7 great grandchildren and all are very young.
I have repeatedly told the executors/trustees that the monies will need to be invested in the trustees names until the children are 18. They don’t want the hassle of this and are adamant that the funds be paid to the children’s parents to invest for them (some of the great grandchildren already have investment accounts). Could this be legitimately seen as an advancement under s32 for the benefit of the great grandchildren? If not what can I do? There is a receipt clause in the Will.
Many thanks
Are the great grandchildren’s interests vested or contingent?
If vested, then it might be practical to rely upon the receipt clause and pay out in accordance with that clause (provided, of course, that the executors believe that whoever it is paid to will ensure it is held for the child’s benefit).
If the interests are contingent, then to pay out solely in reliance on the receipt clause is a breach of trust. Whilst s.32 Trustee Act 1925 could be used to advance the monies to the beneficiaries now, I suggest a more suitable reason than just to avoid the hassle of administering the funds until the contingency is attained would be required. I cannot see the trustees avoiding hassle as being beneficial for the beneficiaries – it seems more like the trustees’ self-interest. It may be that there are legitimate grounds for advances under s.32, but that these have yet to be identified.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Thanks Paul. There is no age stipulation in the Will, just ‘my great grandchildren living at my death’ so I assume the interests are vested?
Anne Duguid
Partner
LGP Solicitors
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There’s a good precedent in Practical Trust Precedents appointing persons to be replacement trustees of a share of the total. Just run off as many of these as you need and the parents of the great-grandchildren can take over the trusteeship for their own children until their children come of age.
Julian Cohen
Simons Rodkin
Unless there’s a clause elsewhere in the will specifying an age that a beneficiary needs to attain then, yes, the interests will be vested.
Whilst unusual to have a separate clause of that nature elsewhere within the will (perhaps almost at the very end), I have it a few times. I really cannot understand why any drafter should effectively “booby trap” a will in this manner.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals