Maintenance-trusts laws and accounts, Financial Accounting

Assignment Help:

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.


Related Discussions:- Maintenance-trusts laws and accounts

Journalizing, ABC Corportation purchased $15,000 of office furniture by put...

ABC Corportation purchased $15,000 of office furniture by putting down $7000 soqn in cash and the rest on accout

Exercise 4.3, prepair two adjusting entries

prepair two adjusting entries

How much would the income from operation, Materials used by Company X in pr...

Materials used by Company X in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. But the same materials are available from Di

Future rates of return, Assume your grandparents have just given you $20,00...

Assume your grandparents have just given you $20,000 on the condition that you invest the money in the stock market. As you contemplate making your investment choices, what account

Financial accounting theory, accountability through conceptual framework in...

accountability through conceptual framework in australia eassy on this topic with research

Accumulated Depreciation, The office building was bought in January 1, 2011...

The office building was bought in January 1, 2011 and was originally planned to be used for 40 years and had no salvage value. It is depreciated on a straight line basis. Now in

Nature of a deeds of arrangement-bankruptcy and liquidation, Nature of a De...

Nature of a Deeds of Arrangement To avoid the expense and delay involved in a bankruptcy, a debtor in trouble may make a private arrangement with the creditors to accept paymen

Which of the following statements is true, Richard Company had 102,000 shar...

Richard Company had 102,000 shares of $5 par value common stock issued and outstanding before repurchasing 10,200 shares for $76,500. Richard had received $2,040,000 cash from shar

Cost recovery deductions, On May 19, 2010, Kim placed in service a LIGHT VA...

On May 19, 2010, Kim placed in service a LIGHT VAN that cost $54,850. It is used 80% for business each year. What is the maximum cost recovery deduction available for the van in 20

Balance sheet and income statement, The balance sheet and income statement ...

The balance sheet and income statement for Bingle Ltd is presented to you as follows: Balance Sheet Extract as at 30 June 2012 with comparatives

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd