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Date Posted: 05:08:16 03/07/03 Fri
Author: agree5
Subject: agree5

281
Deed of appointment of share in trust fund1
THIS DEED OF APPOINTMENT is made the ...... day of ......... by (original trustees) of (addresses) (‘the Original Trustees’)2
WHEREAS
(1) This deed is supplemental to a settlement (‘the Settlement’) dated (date) and made between (1) (settlor) (‘the Settlor’) and (2) the Original Trustees
[1960]
(2) In this deed the expressions3 ‘the Trustees’ ‘the Trust Fund’ ‘the Beneficiaries’ and ‘the Vesting Day’ have the same meaning as in the Settlement
(3) It was provided by the Settlement that the Trustees might apply capital for the benefit of any one or more of the Beneficiaries for the time being living by appointing allocating or appropriating to such Beneficiary such sum or sums out of or investments forming part of the capital of the Trust Fund as the Trustees should think fit either absolutely or contingently upon the attainment by him or her of a specified age or the happening of a specified event before the Vesting Day and so that the provisions of the Trustee Act 1925 Section 31 (as amended by the Family Law Reform Act 1969 and the Trustee Act 2000)4 and the powers of the Trustees to invest and vary investments should apply to any money or investments so allocated or appropriated
(4) The Original Trustees are the trustees for the time being of the Settlement
(5) The assets described in the first schedule are now comprised in the Trust Fund
(6) All the persons named in the second schedule are Beneficiaries
(7) The Trustees have decided to exercise their above recited power in the manner described below
[1961]
NOW THIS DEED WITNESSES as follows:
[1 Appointment of assets
The Trustees in exercise of the above recited and all other (if any) of the powers enabling them irrevocably appoint allocate and appropriate to the persons named in Part I of the second schedule the assets specified opposite their respective names for their respective use and benefit absolutely]5
2 Appointment on attaining specified age
The Trustees in exercise of the above recited and all other (if any) of the powers enabling them irrevocably appoint allocate and appropriate the assets specified in [Part II of] the second schedule to such of the persons named in [Part II of] the second schedule as shall attain the age of 25 years and if more than one in equal shares absolutely6
3 Intermediate income
It is declared and confirmed that the trusts of the appointment allocation and appropriation directed by clause [2] above shall carry the intermediate income and that the provisions of the Trustee Act 1925 Section 31 (as amended by the Family Law Reform Act 1969 and the Trustee Act 2000) shall apply to them accordingly7
[1962]
4 Continuation of Settlement terms
Subject to all the trusts powers and provisions of this deed applicable to the assets specified in [Part II of] the second schedule and if and so far as (for any reason whatsoever) not wholly disposed of by the same such assets and the income of them shall continue to be held upon and with and subject to the trusts powers and provisions declared and contained in the Settlement8
5 Administrative provisions
The administrative and other powers and provisions contained in clauses (number) to (number) (inclusive) of the Settlement shall so far as not inconsistent with the trusts powers and provisions in this deed declared and contained concerning the assets specified in [Part II of] the second schedule continue to apply to such assets during the subsistence of such trusts and provisions
[6 Exclusion of apportionment
All income of the assets specified in the second schedule received by or on behalf of the Trustees from and after the date of this deed shall be treated as if it had arisen wholly after such date and the Apportionment Act 1870 shall not be applicable to it]
[1963]
IN WITNESS etc
FIRST SCHEDULE
(details of assets comprised in the Trust Fund)
SECOND SCHEDULE
[Part I
(names of beneficiaries receiving assets absolutely and details of the assets)]9
[Part II]
(names of beneficiaries receiving an interest in the resettled assets and details of the assets)
IN WITNESS etc
(signatures of the parties)10
(signatures of witnesses)
[1964]

1 This Form is a suggested deed of appointment of the trust fund of a discretionary settlement partly to certain beneficiaries absolutely and partly to other (minor) beneficiaries on accumulation and maintenance trusts. See further the notes to Form 280 [1953] ante and on the question of what constitutes a resettlement for capital gains tax purposes see Inland Revenue Statement of Practice SP 7/84 (11 October 1984) and Paragraph 342 [919] ante. As to accumulation and maintenance trusts see Paragraph 127 [316] ante and see vol 40(2) (2002 Reissue) TRUSTS AND SETTLEMENTS Part 11 [6301]. In this Form the property remains held on the original trusts for capital gains tax purposes: ie the appointment does not trigger any disposal under the Taxation of Chargeable Gains Act 1992 s 71 (42-44 Halsbury’s Statutes (4th Edn) TAXATION).
2 It is necessary to consider on the terms of the settlement itself whether the consent of anyone has to be obtained; for example the consent of the settlor.
3 Clearly the appropriate definitions and terminology used in the settlement must be carefully followed.
4 Ie the Trustee Act 1925 s 31 as amended by the Family Law Reform Act 1969 s 1(3), Sch 1 Pt I and by the Trustee Act 2000 s 40(1), Sch 2 para 25 (48 Halsbury’s Statutes (4th Edn) TRUSTS AND SETTLEMENTS).
5 This part of the appointment is to beneficiaries absolutely. If no beneficiaries are to take an absolute interest this clause should be omitted.
6 This part of the appointment creates an accumulation and maintenance trust under the provisions of the Inheritance Tax Act 1984 s 71 (42-44 Halsbury’s Statutes (4th Edn) TAXATION).
7 See note 4 above.
8 This clause will assist in showing that the property remains comprised in the original settlement for capital gains tax purposes: see Inland Revenue Statement of Practice SP 7/84 (11 October 1984) and Paragraph 342 [919] ante.
9 If no beneficiaries are to take an absolute interest this part of the schedule should be omitted.
10 As to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND DECLARATIONS.

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