Termination of trusts—methods of termination


Published by a UUÂãÁÄÖ±²¥ Private Client expert
Practice notes

Termination of trusts—methods of termination


Published by a UUÂãÁÄÖ±²¥ Private Client expert

Practice notes
imgtext

Duration of a trust

The duration of an express trust is subject to the restrictions imposed by the Rules against Remoteness of vesting and against the creation of trusts of perpetual or indefinite duration otherwise than for Charitable purposes, and by the statutory restrictions on accumulations of income.

The Perpetuities and Accumulations Act 2009 significantly amended the Rule against perpetuities and abolished the restrictions on accumulations in respect of instruments taking effect on or after 6 April 2010. However, practitioners must still have regard to the common law rules and the Perpetuities and Accumulations Act 1964 in certain cases.

See Practice Note: Perpetuities and accumulations.

Ways a trust may terminate

An express trust, after it has become operative, may come to an end in a number of ways, for example:

  1. •

    action taken by the trustees, the settlor, the beneficiaries or a third party—the action may be by virtue of a power conferred by the trust instrument or it may require an application to the court

  2. •

    as a result of particular events occurring, eg the subsequent

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Rules definition
What does Rules mean?

The detailed provisions of a pension scheme.

Read more

Popular documents

Nature and classification of trusts—constitution of trusts

Nature and classification of trusts—constitution of trustsConstituting the trustIn general no trust is created, whatever intention the settlor has manifested, unless legal title is vested in the trustees. This is known as constituting the trust. The trustees must have control of the property. If

Scotland—the process for applying for sequestration

Scotland—the process for applying for sequestrationSequestration in Scotland is the legal process by which an insolvent debtor’s estate is gathered in, realised and then distributed among their creditors by a trustee appointed for that purpose. The process requires that a formal award of

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Financial clean break orders in family proceedings

Financial clean break orders in family proceedingsDuty of the court to consider a clean breakAlthough there is no presumption in favour of there being a financial clean break between parties on divorce, the court is under a duty to consider whether it would be appropriate to exercise its powers so