Protection of trustees when distributing

Question 1

What is a Benjamin order?

Answer 1

Question 2

What is a s27 TA 1925 notice?

Answer 2

Question 3

Explain retained funds

Answer 3

This is where the trustees retain a fund setting aside trust assets in order to be able to discharge liabilities if missing beneficiaries come forward after distribution.

Question 4

Explain payment into court

Answer 4

This gives the court legal control over the funds and effectively allows the trustees to retire.

From the court’s perspective this course of action is a last resort which should only be taken if all realistic options for tracing the beneficiaries have failed.

Question 5

Explain missing beneficiary insurance

Answer 5

Trustees may decide to take out insurance to guard against the risk of missing or unknown beneficiaries emerging after the trust fund has been distributed.

Question 6

Explain obtaining indemnity from beneficiaries

Answer 6

This involves the beneficiaries promising to reimburse the trustees if the trustees are successfully sued by other beneficiaries later.

This is risky because it is only worth anything if the person giving the indemnity is able to pay.