Trusts
A person who made a will has passed away. In their will, they appointed trustees to hold the remaining assets of their estate in trust for their niece. However, this trust is only valid if the niece reaches the age of 25. Currently, the niece is only 19 years old. The will does not include any specific powers.
What is the position of the trustees in relation to the income of the fund?
A person who made a will has passed away. In their will, they appointed trustees to hold the remaining assets of their estate in trust for their niece. However, this trust is only valid if the niece reaches the age of 25. Currently, the niece is only 19 years old. The will does not include any specific powers.
What is the position of the trustees in relation to the income of the fund?
They must pay the income to the niece
(A) If a beneficiary who is over the age of 18 has an interest in the income earned from a trust fund, the trustees are required to pay the income to the beneficiary until their interest either vests or fails. This means that the trustees have no power or obligation to accumulate the income once the beneficiary turns 18 years old.
Therefore, options (B), (C), (D), and (E) are all incorrect, as they assume that the trustees have the discretion to use the income for the beneficiary's maintenance, education, or benefit. Once the beneficiary reaches 18 years of age, the trustees simply must pay the income to the beneficiary.
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