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Review Your SQE 1 Practice Records

Examination Timing: 00H01M35S

A woman died six months ago leaving an estate of £60,000 to be divided equally between her three children at the age of 21. Her son is 24 and her two daughters are 19 and 14. Her son is about to receive his share of the estate. The trustees have received a request to advance capital to help set up the elder daughter’s new catering business. The woman’s will does not extend the trustees’ powers of advancement. What is the maximum amount the trustees can apply in accordance with the request?

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Under the Trustee Act 1925, trustees have the statutory power to advance capital for the benefit of a beneficiary. The statutory power allows trustees to advance up to one-half of the beneficiary's presumptive share. In this case, the estate is £60,000 to be divided equally among the three children, so each child’s presumptive share is £20,000. Since the elder daughter (who is 19) has a presumptive share of £20,000, the trustees can advance up to one-half of this amount, which is £10,000. Additionally, the younger daughter, who is 14, also has a presumptive share of £20,000, and the trustees can similarly advance up to one-half of this amount, which is £10,000. Therefore, the total amount that can be advanced to the elder daughter for her business is £20,000. 


Key Point: This question focuses on the statutory powers of trustees under the Trustee Act 1925 regarding the advancement of capital for the benefit of a beneficiary. Understanding these powers is crucial for trustees in administering trusts and making appropriate decisions regarding the distribution of trust assets.

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只是问的是elder daughter,没问younger daughter,为什么不是10000?

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CELE SQE PASS wishes from Lucky Lion_

Thank you for your question. You are correct in noticing that the question specifically asks about the advancement for the elder daughter and not the younger daughter.

Under the Trustee Act 1925, trustees indeed have the power to advance up to one-half of a beneficiary's presumptive share. In this scenario, the elder daughter's presumptive share of the estate is £20,000. Therefore, the maximum amount that the trustees can advance to the elder daughter for her business would be one-half of her share, which is £10,000.

So, the correct answer to the question regarding the advancement for the elder daughter alone should indeed be £10,000.

I hope this clears up any confusion. Keep up the good work and continue to ask questions—it’s the best way to learn and understand these important principles!

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