If you set up a Trust in your Will, your Trustees will need to be given certain powers in order to administer it. At Valulife we follow best practice when defining these powers and incorporate what are known as the ‘STEP Standard Provisions’.
‘STEP’ stands for the Society of Trusts and Estate Practitioners and the STEP Standard Provisions contain useful material to include in a will, avoiding technical terms that could confuse people who are not legal professionals.
The STEP standard provisions allow Trustees to:
Invest monies from the estate in order to maximise any benefit of the estate to your beneficiaries.
Manage property as though they are the owner – That means that the trustee is able to ensure any maintenance or repair work on a property is undertaken when needed. For example, if you leave behind young children and they continue to live in the family home with their guardian, the Trustee of your Will can make sure that the property doesn’t fall into disrepair.
Purchase property jointly with another person – This power is useful where a property needs to be purchased for a minor beneficiary to live with their guardian(s). The Trustee is able to use money from the estate to put towards the purchase of a property which could then be jointly owned with the guardian. It’s also useful where a married couple want to leave their respective share of their family home to their children but would like the surviving spouse to remain living there first. If, at some point the surviving spouse wants to move from the house or downsize, the Trustee can use the deceased’s share in the family home to purchase a new property jointly with them.
Accumulate income generated on the estate
Purchase property for the occupation of a beneficiary
Allow a business to continue trading
To pay maintenance or advance a lump sum to a beneficiary
Special provisions
The powers described above are the ‘standard provisions’, but there are also special provisions which can be incorporated where the need arises. Special provisions will be necessary where you have instructed that a certain trust (or trusts) is to be incorporated into your Will.
You can also read the full text of the STEP provisions here.
