Variation of Trust
CHAPTER 9 VARIATION OF TRUST 9.1 Introduction
It means in what circumstances changes can be made in the terms of the trust. After a trust has been validly created, it becomes apparent that it might be better that original terms were altered. Hence, variation of trust allows the trustees to do things beyond their powers.
CASE LAW: Saunders v/s Gautier: It states that changes can be made in the Trust. Hence, the general rule is that the original trust probate must be obtained and a breach of trust will be committed if the trustee changes the terms of the trust.
The case of NEW It has been said that even the court of law cannot change the terms of trust because there is the role of fidelity of the settlor when he has created the trust.
Exceptionally, in certain circumstances the terms of the trust can be varied and this prefers be the management and the administration of the trust and can also change the beneficial interest and the idea behind bringing changes of trust is for the benefit of the beneficiary.
9.2 Who can bring changes to the terms of Trust?
This is governed by section 66 of the Trust Act. The court of law will allow the trustee to do acts not permitted by the terms of the trust, if the court has inherent jurisdiction to bring variation in the terms of trust.
9.3 2 Types of Variation
9.3.1 Management and Administration of Trust This brings changes enabling the trust to be run in a more productive and efficient manner.
9.3.2 Changes about beneficial interest of beneficiary This brings changes to the best interest of the beneficiary, as the main objective of a trustee is to
always act in the best interest of the beneficiary.
9.4 Circumstances where the court of law can intervene
9.4.1 Emergency Issues The court has power to allow trustees to do more administrative act which is outside the terms of the trust if am emergency arises. The court will only intervene if the act will not have been foreseen by the settlor when creating
It means in what circumstances changes can be made in the terms of the trust. After a trust has been validly created, it becomes apparent that it might be better that original terms were altered. Hence, variation of trust allows the trustees to do things beyond their powers.
CASE LAW: Saunders v/s Gautier: It states that changes can be made in the Trust. Hence, the general rule is that the original trust probate must be obtained and a breach of trust will be committed if the trustee changes the terms of the trust.
The case of NEW It has been said that even the court of law cannot change the terms of trust because there is the role of fidelity of the settlor when he has created the trust.
Exceptionally, in certain circumstances the terms of the trust can be varied and this prefers be the management and the administration of the trust and can also change the beneficial interest and the idea behind bringing changes of trust is for the benefit of the beneficiary.
9.2 Who can bring changes to the terms of Trust?
This is governed by section 66 of the Trust Act. The court of law will allow the trustee to do acts not permitted by the terms of the trust, if the court has inherent jurisdiction to bring variation in the terms of trust.
9.3 2 Types of Variation
9.3.1 Management and Administration of Trust This brings changes enabling the trust to be run in a more productive and efficient manner.
9.3.2 Changes about beneficial interest of beneficiary This brings changes to the best interest of the beneficiary, as the main objective of a trustee is to
always act in the best interest of the beneficiary.
9.4 Circumstances where the court of law can intervene
9.4.1 Emergency Issues The court has power to allow trustees to do more administrative act which is outside the terms of the trust if am emergency arises. The court will only intervene if the act will not have been foreseen by the settlor when creating