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Absolute entitlement

Occasions of absolute entitlement

The main occasions when a person becomes absolutely entitled to trust property as against the trustees include when¹:

1. Ìý

   •ÌýÌýÌýÌý a settlement ends after a specific period

2. Ìý

   •ÌýÌýÌýÌý the trustees exercise a power of advancement or appointment to release capital to a beneficiary

3. Ìý

   •ÌýÌýÌýÌý a contingency occurs, such as a particular birthday or marriage

4. Ìý

   •ÌýÌýÌýÌý the beneficiaries agree to terminate the settlement

5. Ìý

   •ÌýÌýÌýÌý a life interest terminates (see I5.1021)

The person becoming absolutely entitled against the trustee need not necessarily do so as a beneficiary. In Hoare Trustees v Gardner² trustees of a settlement, in exercise of a special power of appointment, advanced property from that settlement to be held by themselves as trustees of a second settlement. It was held that in their capacity as trustees of the second settlement they had become absolutely entitled to the property as against the trustees of the first settlement (see I5.1019).

Meaning of absolutely entitled

When