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

D, #questiondd

#questiondd

Construct the market value balance sheet, Construct the Market Value Balanc...

Construct the Market Value Balance Sheet XYZ, Inc., another company founded by Larry Davidson in 2005, is currently entirely equity financed. That means the company carries no

Secret trusts-trusts laws and accounts, SECRET TRUSTS The initial basis o...

SECRET TRUSTS The initial basis of the doctrine of secret trusts was the refusal of equity to permit a statute to be used as an engine of fraud (e.g. Bannister v Bannister).  Cer

What is backup withholding, Q. What is Backup Withholding? Backup Withh...

Q. What is Backup Withholding? Backup Withholding -Payers of interest, dividends and other reportable payments shouldwithhold income tax equal at a rate equal to the fourth low

What kinds of business ownership exist, What kinds of business ownership ex...

What kinds of business ownership exist? Particular form of business ownership has significant implications for accounting purposes and so it's useful to be clear about the main

Calculate total annual interest, Q. Chrissy currently has a credit card tha...

Q. Chrissy currently has a credit card that charges 15 percent interest. She usually carries a balance of about $500. Chrissy has received an offer for a new credit card with a tea

Money, if you inherited 45,000 today and invested all of it in a security t...

if you inherited 45,000 today and invested all of it in a security that paid a 7 percent rate of return how much would you have in 25 years

Explain bonus or capitalisation issues, Q. Explain bonus or capitalisation ...

Q. Explain bonus or capitalisation issues? A rights issue is a approach of raising finance via the issue of shares to existing equity shareholders. Consecutively to make such a

Which depreciation method would produce the higher npv, Wendy is evaluating...

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

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