Possession or not?

27 October 2009

Issue: 4229 / Categories: Forum & Feedback , Trusts

A grandfather set up a trust where the trustees have absolute discretion to appoint to a wide variety of beneficiaries, but ultimately the trust fund is for the benefit of two grandchildren

My client is a trustee of a trust set up by his father in 1993; his parents are now dead. The trustees have the power to appoint among a wide class of beneficiaries as they in their absolute discretion decide.

There is then a clause which states that ‘until and subject to and in default of
any appointment under [the power to appoint clause] and so far as any appointment shall not extend or shall fail for any reason the trustees shall hold the trust fund and the income thereof for the grandchildren of the settlor in equal shares absolutely’.

Another clause states that ‘all income accruing in the hands of the trustees during the trust period is to be paid or applied for the beneficiaries currently entitled (whether by appointment under clause … or in default of appointment under clause …) and the provisions in this...

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