Maintenance-trusts laws and accounts, Financial Accounting

MAINTENANCE

Trustees may pay to the parent or guardian out of income of a fund held on the trust for an infacnt reasonable sums for his maintenance and education, having regard to his age and station in life, subject to the following conditions:

1. The power is subject to any prior interest or charge affecting the property;

2. A payment must be in proportion to amounts paid from other available funds (if any);

3. The power is not affected by the existence of a person bound by law to maintain or educate the infant; nor it is affected by the fact that particular sums have already been set aside for this purpose;

4. The power exists whether  the infant’s interest is vested or contingent (provided, in the latter case, that the trust carriers the intermediate income);

5. Payments out of capital may be valid, but should normally only be made under S.34 (see below) or  with the consent of the court;

6. The residue of the income must be accumulated and invested;

7. The trust instrument may exclude this power.

Posted Date: 12/13/2012 11:55:51 PM | Location : United States







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