I am currently dealing with a case where a testator (A) died, leaving a discretionary trust in her Will, for the benefit of various potential beneficiaries, being A’s step-son (B), B’s former spouse (C), any of B or C’s children (D & E), and any of B or C’s grandchildren (F, G, H, I & J).
The original trustees were A’s step-son (K) and A’s first husband’s cousin, who was also a solicitor (L). L died and K appointed his wife (M) to act as an additional trustee alongside him. K then died, and M appointed D to act as an additional trustee alongside her. M and D are the current trustees.
They intend to bring the trust to an end and distribute to F, G, H, I & J in equal shares. F, G & H are children of D. I & J are D’s niece and nephew.
There are no STEP provisions contained within the Will and there is no express power for a trustee to benefit themselves. I am just considering whether D distributing to her own children would be a problem from a self-dealing perspective.
Therefore, do members think that M and D can distribute the trust fund to F, G, H, I & J without more and that M is sufficiently independent, or do members think that an independent trustee is required before distributing in this way?
Joe Pegler
Chattertons Solicitors