We reviewed a client's trust deed to see if it was fit for his new circumstances. It was fully flexible and, on its face, met his needs. However, we noticed that the client settled his assets on the trust, was a trustee and beneficiary, could appoint and remove trustees, and could decide who received the trust fund.
A key reason for the client settling the trust was to protect against a claim under the Property (Relationships) Act 1976 if he entered a relationship. Based on case law, we were concerned that he held too much power over the trust, and that could have adverse implications if such a claim arose.
On our advice, the client relinquished some of his powers.