STEP Provision for Charity ceasing to exist

Trusts Discussion
1

I am dealing with an estate whereby two thirds passes to Charity. There are 3 Charities who no longer exist, one of which has been taken over by another Charity.

The other 2 Charities have ceased to exist and the Will incorporates the STEP Provisions 2nd Edition so the Executor will be exercising his powers under clause 4.16 to pay the shares to another Charity of similar nature.

My question is; Do I need to prepare a document to make it clear that the Executor has chosen X Charity in place of Y Charity as it no longer exists. One of the Charities, who have now ceased to exist, would have received a large amount in the estate so I would want to be sure that we have a clear paper trail.

Many thanks,

2

Yes, I would recommend a formal resolution by the executors to evidence the exercise of their power, such resolution specifically referring to the relevant STEP provision.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

3

From what you say it sounds like the STEP provisions will cover you, however it might be worth checking to see if you need to follow the ‘Royal Sign Manual’ procedure. I had never heard of it until relatively recently, where it was necessary in one of the estates I am dealing with.