Termination of trusts

Termination of trusts—methods of termination

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

•
the settlor may exercise a power of revocation or a power of appointment reserved to them in the trust instrument
•
it may be set aside under the provisions relating to the avoidance of transactions at an undervalue or to dispositions in fraud of creditors, on the ground that the disposition was induced by fraud, duress, undue influence or mistake
•
in the case of matrimonial proceedings or proceedings on the dissolution of a registered civil partnership, the court has power to:
1. ◦
  adjust interests in settlements
2. ◦
  set aside a disposition intended to defeat a claim for financial relief in such proceedings
3. ◦
  set aside a settlement made in compliance with a property adjustment order in matrimonial proceedings where this would amount to a transaction at an undervalue in an insolvency
•
the passage of time
•
due to rules of construction: the rule in Andrews v Partington [1775-1802] All ER Rep 209; the rule in Lassence v Tierney [1843-60]

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Private Client News

MoJ publishes factsheet on applying for payment out of a fund following the death of a Court of Protection client

The Ministry of Justice has published a new factsheet (CFO 401) detailing the process of applying for payment out of a fund held by the Court Funds Office following the death of a Court of Protection client. The framework, which applies to England and Wales, outlines the specific form to be completed, the necessary supporting documentation, and the procedure for applying for payment of inheritance tax and funeral expenses.

Finance Bill 2025 update: Public Bill Committee to begin in January

The Public Bill Committee is expected to begin scrutiny of the Finance Bill on 28 January 2025. Comments on the Bill are invited before then, and revised explanatory notes have been issued to cover the Government’s proposed Pillar 2 amendments.

Private Client weekly highlights—19 December 2024

This week’s edition of Private Client highlights includes: (1) HMRC updates form IHT100f; (2) Knight v Barnsley, which held that the Court of Protection did have jurisdiction to determine a dispute over a claimant’s deputy’s release from reverse indemnity undertakings; (3) Manolete Partners Plc v White, in which the Court of Appeal held that occupation pension benefits are generally inalienable; (4) Hannah v Revenue and Customs Commissioners, where the First Tier Tribunal (Tax) permitted the amendment of grounds of appeal to include ground that the transfer of assets abroad regime is incompatible with EU law; (5) Hirachand v Hirachand, a decision of the Supreme Court which makes it clear that success fees cannot be included in awards for financial provision under the Inheritance (Provision for Family and Dependants) Act 1975; and (6) the Chancellor has confirmed that the Spring Forecast will take place on 26 March 2025.