Terminating a Protective Trust

Trusts Discussion
1

Wonder if anyone could assist. I have a client who is the Principal Beneficiary of a Protective Trust. It was created by his Father in 1998.

There hasn’t been any “event” i.e. bankruptcy etc and so the Trust is still similar to that of a life interest. The Trust itself has overriding powers for Trustees to end the Trust and pay the capital/income in its entirety to the Principal Beneficiary.

It has now been decided to terminate the Trust. The Settlor recently passed and it was his final wish for the son to receive the trust fund absolutely. Trust Fund consists of company shares - hold over relief will be available for the cgt.

Is a simple Deed of Appointment/Advancement enough to terminate the Trust?

Thank you in advance.

2

If the trust instrument provides a specific power for the trustees to terminate the trust, it may also specify how this should be accomplished. If not, I suggest that a simple dee of appointment might suffice, citing the power upon which the trustees rely to make the appointment.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals