Ending a Trust

A trust may end automatically, for example on the death of the life tenant or when beneficiaries fulfil an age contingency. Alternatively, the trust may be wound up by the trustees exercising a power to under the trust instrument (a power of appointment or a power to apply capital for the advancement or benefit of beneficiaries).

Whenever a trust ends and for whatever reason, there are certain things to consider. This session will look at:

• Standard matters which trustees need to consider whatever the type of trust

• Matters relevant to the ending of a life interest trust on death
  • Who are the beneficiaries?
  • Are they absolutely entitled?
  • Is there a transitional serial interest?
  • What if a remainder beneficiary has predeceased?
  • What if the remainder interest has not been disposed of?
• Matters relevant when trustees exercise their powers to end a trust
  • Are the trustees exercising their powers for a proper purpose?
  • What formalities have to be complied with?
  • What should a distribution document contain?

Professor Lesley King, Professional Development Consultant, University of Law