ROTL94
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Hello,
I've run into a bit of difficulty with this E&T question, I've got answers for all the other parts but can't find any info on this section 'Joby was a beneficiary of a trust which had been established by his late mother, and he received all of the income from that trust for his life. At a meeting with the trustees of that trust he instructed them to pay the income from that trust in future to his daughter Jessie.' is he entitled to do this? What do I need to be looking at here?
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ROTL94
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Catherine1973
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Is there a section in your course or textbook called variation? We didn’t study that but I saw it in the textbook and imagine it covers your example.
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ROTL94
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(Original post by Catherine1973)
Is there a section in your course or textbook called variation? We didn’t study that but I saw it in the textbook and imagine it covers your example.
Variations of trusts seems to relate to beneficiaries who don't have the capacity E.G. appropriate mental faculties to be beneficiaries and the court's right to intervene in such instances, not about whether or not a beneficiary can just transfer his equitable interest to someone else, sadly.
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ROTL94
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(Original post by Catherine1973)
Is there a section in your course or textbook called variation? We didn’t study that but I saw it in the textbook and imagine it covers your example.
Oh it;s ok actually found the answer

Spoiler:
Show
A beneficiary under a trust of property may give away their beneficial interest to another person by:

assigning it to another person;
assigning it to a trustee on trust for the other person, or;
declaring themselves a trustee of the interest for that other person.

However, an agreement to transfer the beneficial interest must be in writing otherwise it will be void. The agreement need not be signed by the beneficiary themselves but may be signed on their behalf by a solicitor.

The beneficiary can instruct the trustee to hold the equitable interest on trust for a third party.

Where a beneficiary directs the trustee to hold his equitable interest on trust for a third party this is considered to be an agreement (disposition or assignment) under section 53(1)(c) and will be void if not declared in writing.

The beneficiary can also ask the trustee to declare a trust in favour of the third party instead of that original intended beneficiary. This must be made in writing by virtue of section 53 (1) (c).

The beneficiary can also declare a sub-trust arising from the original trust in favour of the third party. Where the trustee holds the property on trust for the beneficiary, it is for the beneficiary to declare himself a trustee of the equitable interest for the benefit of a third party. Again, this must be in writing.

In these cases, the benefits and liabilities in relation to the beneficial entitlement of the original beneficiary will be transferred to the third party (the new beneficiary) under the sub-trust. The beneficiaries therefore take on the role of the trustee holding the property on trust for the third party
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Lawschoolhack
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(Original post by ROTL94)
Oh it;s ok actually found the answer

Spoiler:
Show
A beneficiary under a trust of property may give away their beneficial interest to another person by:

assigning it to another person;
assigning it to a trustee on trust for the other person, or;
declaring themselves a trustee of the interest for that other person.

However, an agreement to transfer the beneficial interest must be in writing otherwise it will be void. The agreement need not be signed by the beneficiary themselves but may be signed on their behalf by a solicitor.

The beneficiary can instruct the trustee to hold the equitable interest on trust for a third party.

Where a beneficiary directs the trustee to hold his equitable interest on trust for a third party this is considered to be an agreement (disposition or assignment) under section 53(1)(c) and will be void if not declared in writing.

The beneficiary can also ask the trustee to declare a trust in favour of the third party instead of that original intended beneficiary. This must be made in writing by virtue of section 53 (1) (c).

The beneficiary can also declare a sub-trust arising from the original trust in favour of the third party. Where the trustee holds the property on trust for the beneficiary, it is for the beneficiary to declare himself a trustee of the equitable interest for the benefit of a third party. Again, this must be in writing.

In these cases, the benefits and liabilities in relation to the beneficial entitlement of the original beneficiary will be transferred to the third party (the new beneficiary) under the sub-trust. The beneficiaries therefore take on the role of the trustee holding the property on trust for the third party
That was a quick bump! It's a 53(1)(c) issue.
(Original post by ROTL94)
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