variation of trust
variation of trustchange in the operation of a TRUST. It is the duty of a TRUSTEE faithfully to carry out the terms of the trust and to give effect to the beneficial interest thereunder. It is possible, however, for the trusts to be varied either by the beneficiaries themselves or pursuant to an application to the court under the Variation of Trusts Act 1958. For a variation by the beneficiaries themselves to be possible, there must be an agreement to that end by all the beneficiaries, and those beneficiaries must all be of full age and capacity and their entitlements must in aggregate amount to the entire beneficial interest under the trust. It follows from this that where a beneficiary, by reason of infancy or other incapacity, is unable to assent to the proposed arrangement, the rule cannot apply. In such a case an application may be made to the court under the Variation of Trusts Act. The court may approve the arrangement if it is of the opinion that it is for the benefit of the beneficiaries who lack the capacity to assent.
Collins Dictionary of Law © W.J. Stewart, 2006