Trustees and their Dispositive Powers - disposing of or modifying beneficial interests

In this session we will explore the dispositive powers conferred on Trustees to dispose of or modify the beneficial interests under a Trust – Powers of Appointment, Application (the latter also known as an Advancement), and Resettlement.

This essential session is aimed at Solicitors or CILEx qualified lawyers who already act for Trustees, or prepare Settlement Deeds or Wills which include trusts, and who want to know more or gain a more comprehensive understanding of the law relating to the exercise by Trustees of their dispositive powers.

By participating in this webinar, you should come out of it thinking more about what you’re trying to do with an existing trust. Rather than just diving in, you should understand more fully what you’re doing and why, and be able to consider objectively whether it will work.

What do we mean by this?

Next time you advise Trustees on or start to draft a Deed of Appointment, a Deed of Application or Advancement, or a Deed of Resettlement, you should be able to determine what powers the Trustees have in this case.

You should then be able to ask yourself:

• Can the Trustees achieve what they want, using e.g. their power of appointment, or do they need to exercise another power? Which power should they use, if they have more than one?
• What is the scope of the power you’re advising them to use?
• What is the effect of the exercise of this power?
• What can be done, e.g. if the powers conferred on the Trustees don’t go far enough?
• Is there anything else that could prevent the Trustees from achieving their desired result?

After participating in this session, you’ll have a better understanding of the points at stake and when you will need to seek guidance from Counsel.

We’re going to consider the main powers that may have been conferred on your Trustees and dissect some of these Trustees’ powers to explore the scope of them.

You will also be aware of some of the steps that can be taken by Trustees by using one of their dispositive powers so that you can spot opportunities and proactively give them advice.

As well as considering some drafting points, we’re going to think about how the exercise of a power can go horribly wrong:

• What do you need to look out for?
• What can prevent an exercise of a power from being effective?

Finally, we’ll have a look at some of the tax implications of the exercise by Trustees of a dispositive power, particularly with reference to capital gains tax and inheritance tax.

Who this is for:

Solicitors or CILEx qualified lawyers who act for Trustees and/or prepare Settlement Deeds or Declarations of Trust and want to gain further knowledge or a better understanding of the law surrounding the exercise by Trustees of their dispositive powers.

Top 3 facts from the webinar:

• How to decide the scope of Trustees’ dispositive powers
• What common problems occur when dealing with Trustees’ dispositive powers
• What are the main tax considerations to be aware of

Level of expertise:

Intermediate or above – some previous knowledge or awareness required

CPD hours:

This webinar provides you with 1.5 hours of learning.

Attendees will receive a CPD certificate upon completion of this course.

Learning objectives:

• You will be able to identify what powers the Trustees have in relation to an existing trust
• You will know how to determine the scope of the powers that the Trustees have and what to look out for
• You will understand the difference between “narrow” and “wide” powers and why this matters
• You will gain an appreciation of some of the steps that Trustees can take by exercising one of their dispositive powers so that you can advise Trustees more proactively on what they can (or can’t) do
• You will know some useful drafting techniques to apply when preparing a Deed of Appointment, Application or Resettlement
• You will understand how an exercise by Trustees of a dispositive power can go wrong and how to avoid this
• You will have an awareness of some of the tax implications of the exercise by Trustees of a dispositive power, with particular reference to capital gains tax and inheritance tax