How you wish to provide for your family and loved ones after your passing is determined by the provisions you make. The Society of Trust and Estate Practitioners ‘STEP’ is a professional body of lawyers, accountants, trustees and other practitioners who assist families plan for the future. STEP provisions are there to help you do this fairly and avoid technical terms which could confuse a lay reader.
What Clauses are Essential to All Wills?
Essential clauses in all wills typically include provisions for the appointment of an executor, distribution of assets, guardianship of minor children, and revocation of previous wills. However, the provisions that are made, are what makes each will different.
What are STEP Provisions?
The STEP provisions refer to the Standard Provisions and all of the Special Provisions of the Society of Trust and Estate Practitioners (2nd Edition). These provisions serve as a set of guidelines and rules that govern the administration of estates and trusts. They provide a framework for executors and trustees to follow when handling the distribution of assets and ensuring the proper management of trusts.
Why are STEP provisions important?
The STEP provisions hold significance as they help ensure the fairness of the process for all parties involved in a will. By providing a standardised set of guidelines and powers, they offer clarity and protection to both beneficiaries and trustees. These provisions establish procedures for addressing conflicts of interest, compensation for professional trustees, liability limitations, and other important aspects of estate administration.
The Different STEP Provisions
List of STEP Provisions you can consider:
- Provision 9: Conflicts of interest between trustees and beneficiaries
- Provision 10: Compensation for professional trustees
- Provision 11: Compensation for Trust Corporations
- Provision 12: Limiting liability and seeking advice from experienced barristers
- Provision 14: Borrowing money from the trust
- Provision 15: Delegation of functions without liability
- Provision 16: No duty to inquire into the conduct of a company
- Provision 17: Altering the age at which beneficiaries receive income
- Provision 18: Applying capital for the benefit of minor beneficiaries
- Provision 19: Absolute discretion in the application of powers
- Provision 20: Appointing trustees from outside the UK
The Standard Provisions: 9 to 12
The Standard Provisions play a crucial role in estate administration.
Provision 9 deals with conflicts of interest between trustees and beneficiaries, requiring the involvement of an independent trustee to protect beneficiaries' interests.
Provision 10 allows professional trustees to charge for their services, even if a lay trustee could have performed the work.
Provision 11 permits Trust Corporations to charge based on their Terms and Conditions at the time of appointment.
Provision 12 limits the liability of trustees who act honestly and with reasonable care, removes the liability of lay trustees for negligence (unless fraudulent), and protects trustees seeking advice from experienced barristers.
The Special Provisions: 14 to 23
The Special Provisions further govern the actions of trustees when managing an estate or trust. They cover various important aspects such as trustees borrowing money from the trust, delegating functions without liability, altering the age at which beneficiaries receive income, exercising discretionary powers, appointing trustees from outside the UK, using income for taxes and expenses, valuing assets at the date of death, and distributing the trust without ascertaining unknown possible beneficiaries. These provisions aim to strike a balance between providing trustees with necessary powers and ensuring that their actions are carried out responsibly and in accordance with the beneficiaries' best interests.
FAQ
What is the definition of STEP provisions in a Will?
Step provisions in a Will refer to clauses or provisions that outline the distribution of assets among stepchildren or stepfamily members.
What does a solicitor need to qualify as a STEP practitioner?
To qualify as a STEP practitioner, a solicitor typically needs to meet the professional requirements set by STEP, which may include completing relevant education and training and demonstrating expertise in trust and estate matters.
What are the standard provisions outlined in the Society of Trust and Estate Practitioners 1st edition?
The standard provisions outlined in the Society of Trust and Estate Practitioners 1st edition encompass a range of guidelines and recommendations for professionals working in the field of trusts and estates, covering various aspects such as administration, taxation, and best practices.
What is the significance of Section 31 of the Trustee Act 1925?
Section 31 of the Trustee Act 1925 holds significance as it grants trustees the power to seek guidance from the court regarding the administration of trusts, allowing them to obtain court approval or directions for certain matters related to their responsibilities as trustees.
What is a no provision in a will?
"No provision" in a will refers to the absence of specific instructions or bequests for a particular individual or entity.
What should be included in a will UK?
In a will in the UK, it is important to include details about the testator's assets, beneficiaries, appointment of an executor, provisions for children and dependents, and any specific instructions or bequests. Additionally, it is advisable to consider inheritance tax implications and seek professional advice for drafting a comprehensive and legally valid will.
