Protective trust meaning

Appointment of new trustee What are the eligibility criteria? Trustees must be appointed in line with the charity’s governing document as well as the general law. Begin by reviewing the governing document, which may cap the number of trustees or stipulate age limits. Anyone under 18 cannot act as a trustee of an unincorporated association or a charitable trust. Individuals aged 16 or over may serve as company directors and, consequently, can be charity trustees of a charitable company...

In this issue: Court of Protection Elderly and vulnerable clients UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Budgets and Finance Bills Pensions, insurance and tax efficient investments International Question of the week Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Court of Protection An appeal was brought against a Circuit Judge’s decision in the Court of Protection, which had summarily resolved the best interests of an elderly patient, VT, on residence and care before medical evidence had been obtained (VT (by her litigation friend, the Official Solicitor) v NHS Cambridgeshire and Peterborough Integrated Care Board). The matter came before the High Court in Court of Protection proceedings. The appeal followed the summary disposal of a contested best interests dispute when VT’s capacity remained in issue, and although...

Written by Aziz Abdul, legal director, and Brian Rostron, associate, at Addleshaw Goddard LLP. Contract Natural Gas Ltd (in liquidation) v ZOG Energy Ltd (in liquidation) [2025] EWHC 86 (Ch) What are the practical implications of this case? This decision is useful as it establishes, for the first time, how limitation applies to administrations begun after the Enterprise Act 2002. The court acknowledged that allowing time to continue after entry into administration may increase legal costs and complicate steps for creditors, who may feel compelled to issue protective claims to protect their positions. Nonetheless, those policy points were not compelling enough to support a statutory trust or to determine that time ceases to run. Reflecting the approach in Re Maxwell Fleet and Facilities Management Ltd [2001] 1 WLR 323, the court indicated that any gap in the law on the impact of an administration order on limitation is not for the courts to fill; it is for Parliament to resolve. What was the background? CNG, incorporated...

In this issue: Probate Court of Protection Elderly and vulnerable clients Spouses, civil partners and cohabitants UK taxes for Private Client HMRC Manuals tracker Tax avoidance, evasion and non-compliance Family businesses and ownership structures Insolvency—Private Client Contentious trusts and estates Pensions, insurance and tax efficient investments International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&A Useful information Probate HM Land Registry updates Practice Guide 6—Devolution on the death of a registered proprietor HM Land Registry (HMLR) has revised Practice Guide 6—Devolution on the death of a registered proprietor. Section 6 now aligns with HMLR’s refreshed approach to first registrations. Formerly, where there were no other requisitions, HMLR would complete the application with a protective note and issue a...

Court of Appeal—professional negligence ARCHIVED : This Practice Note has been archived and is not maintained. The Court of Appeal upheld an appeal in a claim against solicitors, holding that the loss of a chance head of damage was too remote. At first instance, the judge concluded that Lewis Silkin LLP had fallen below the required standard by not advising their client to include a jurisdiction provision in his employment agreement with a franchisee involved in the Indian Premier League’s Twenty20 competition. Because no jurisdiction clause appeared in the contract, when the client later issued proceedings against the franchisee over a severance entitlement, he faced jurisdictional challenges (ultimately dismissed) brought by the franchisee, which postponed his obtaining judgment for £10 million in severance. The client’s case was that, with proper advice on jurisdiction, the contract would have contained an exclusive jurisdiction clause. On that footing, he said, he would have secured judgment for the severance sum sooner (as there would have been no hold‑ups arising from jurisdiction objections) and...

FORTHCOMING CHANGE : The Trusts and Succession (Scotland) Act 2024 obtained Royal Assent on 30 January 2024, signalling the first significant reassessment of Scottish trusts law in more than a century since the foundational Trusts (Scotland) Act 1921. The trusts provisions will only commence once Scottish Ministers introduce the requisite secondary legislation, whereas certain succession provisions took effect on 30 April 2024. The key updates designed to modernise the regime are outlined in News Analysis: Trusts and Succession (Scotland) Bill passed. Practice Notes covering aspects of Scottish trusts and succession law will be further revised to reflect this new legislation... Liferent trusts A liferent trust is a vehicle that, once established, grants a beneficiary or beneficiaries the right to use the trust property and to receive its income. The individual benefiting from the use or fruits of the trust property is termed the liferenter. Liferent trusts are also sometimes known as interest in possession (IIP) trusts or life interest trusts (the preferred English terminology)—see Practice Note: Creation...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...