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Session 1998-99 Internet Publications Other Bills before Parliament |
Trustee Delegation Bill [H.L.]
This is the Trustee Delegation Bill [H.L.], as introduced in the House of Lords on 3 December 1998 | |||||||||||||||||||||||||||||||||||||||||||||||||
EXPLANATORY NOTES | |||||||||||||||||||||||||||||||||||||||||||||||||
Explanatory Notes to the Bill, prepared by the Lord Chancellor's Department, are published separately as HL Bill 6- EN. | |||||||||||||||||||||||||||||||||||||||||||||||||
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The Lord Chancellor has made the following statement under section 19(1)(a) of the Human Rights Act 1998: | |||||||||||||||||||||||||||||||||||||||||||||||||
In my view the provisions of the Trustee Delegation Bill are compatible with the Convention rights. | |||||||||||||||||||||||||||||||||||||||||||||||||
Trustee Delegation Bill [H.L.] | |||||||||||||||||||||||||||||||||||||||||||||||||
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B I L L INTITULED An Act to amend the law relating to the delegation of trustee functions by power of attorney and the exercise of such functions by the donee of a power of attorney; and to make provision about the authority of the donee of a power of attorney to act in relation to land. BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:- | |||||||||||||||||||||||||||||||||||||||||||||||||
Attorney of trustee with beneficial interest in land | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of trustee functions by attorney. | 1. - (1) The donee of a power of attorney is not prevented from doing an act in relation to- | ||||||||||||||||||||||||||||||||||||||||||||||||
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by reason only that the act involves the exercise of a trustee function of the donor if, at the time when the act is done, the donor has a beneficial interest in the land, proceeds or income. | |||||||||||||||||||||||||||||||||||||||||||||||||
(2) In this section- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(3) Subsection (1) above- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(4) The donor of the power of attorney- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(5) Subsections (1) and (4) above- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(6) The fact that it appears that in dealing with any shares or stock the donee of the power of attorney is exercising a function by virtue of subsection (1) above does not affect with any notice of any trust a person in whose books the shares are, or stock is, registered or inscribed. | |||||||||||||||||||||||||||||||||||||||||||||||||
(7) In any case where (by way of exception to section 3(1) of the Trusts of Land and Appointment of Trustees Act 1996) the doctrine of conversion continues to operate, any person who, by reason of the continuing operation of that doctrine, has a beneficial interest in the proceeds of sale of land shall be treated for the purposes of this section and section 2 as having a beneficial interest in the land. | |||||||||||||||||||||||||||||||||||||||||||||||||
(8) The donee of a power of attorney is not to be regarded as exercising a trustee function by virtue of subsection (1) above if he is acting under a trustee delegation power; and for this purpose a trustee delegation power is a power of attorney given under- | |||||||||||||||||||||||||||||||||||||||||||||||||
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under which the donor of the power is expressly authorised to delegate the exercise of all or any of his trustee functions by power of attorney. | |||||||||||||||||||||||||||||||||||||||||||||||||
(9) Subject to section 4(6) below, this section applies only to powers of attorney created after the commencement of this Act. | |||||||||||||||||||||||||||||||||||||||||||||||||
Evidence of beneficial interest. | 2. - (1) This section applies where the interest of a purchaser depends on the donee of a power of attorney having power to do an act in relation to any property by virtue of section 1(1) above. | ||||||||||||||||||||||||||||||||||||||||||||||||
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(2) Where this section applies an appropriate statement is, in favour of the purchaser, conclusive evidence of the donor of the power having a beneficial interest in the property at the time of the doing of the act. | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) In this section "an appropriate statement" means a signed statement made by the donee- | |||||||||||||||||||||||||||||||||||||||||||||||||
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that the donor has a beneficial interest in the property at the time of the donee doing the act. | |||||||||||||||||||||||||||||||||||||||||||||||||
(4) If an appropriate statement is false, the donee is liable in the same way as he would be if the statement were contained in a statutory declaration. | |||||||||||||||||||||||||||||||||||||||||||||||||
General powers in specified form. | 3. In section 10(2) of the Powers of Attorney Act 1971 (which provides that a general power of attorney in the form set out in Schedule 1 to that Act, or a similar form, does not confer on the donee of the power any authority to exercise functions of the donor as trustee etc.), for the words "This section" substitute "Subject to section 1 of the Trustee Delegation Act 1999, this section". | ||||||||||||||||||||||||||||||||||||||||||||||||
Enduring powers. | 4. - (1) Section 3(3) of the Enduring Powers of Attorney Act 1985 (which entitles the donee of an enduring power to exercise any of the donor's functions as trustee and to give receipt for capital money etc.) does not apply to enduring powers created after the commencement of this Act. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Section 3(3) of the Enduring Powers of Attorney Act 1985 ceases to apply to enduring powers created before the commencement of this Act- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(3) Where an application for the registration of the instrument creating such an enduring power is made before the commencement of this Act, or during the period of one year from that commencement, section 3(3) of the Enduring Powers of Attorney Act 1985 ceases to apply to the power- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(4) In subsection (3) above- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(5) For the purposes of subsection (3)(b) above an application is finally refused- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(6) Section 1 above applies to an enduring power created before the commencement of this Act from the time when (in accordance with subsections (2) to (5) above) section 3(3) of the Enduring Powers of Attorney Act 1985 ceases to apply to it. | |||||||||||||||||||||||||||||||||||||||||||||||||
Trustee delegation under section 25 of the Trustee Act 1925 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amendments of section 25 of the Trustee Act 1925. | 5. - (1) Section 25 of the Trustee Act 1925 (delegation by power of attorney of any or all of a trustee's functions) has effect subject to the following amendments in relation to powers of attorney created after the commencement of this Act. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) In subsection (1), omit the words "for a period not exceeding twelve months". | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) After that subsection insert- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(4) In subsection (2), omit the words "but not" onwards (which prevent a sole co-trustee from being the donee of a power of attorney under section 25). | |||||||||||||||||||||||||||||||||||||||||||||||||
(5) Omit subsection (3) (which requires that an instrument creating a power of attorney under section 25 be attested by at least one witness and was superseded by the Law of Property (Miscellaneous Provisions) Act 1989). | |||||||||||||||||||||||||||||||||||||||||||||||||
(6) After subsection (4) insert- | |||||||||||||||||||||||||||||||||||||||||||||||||
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Section 25 powers as enduring powers. | 6. Section 2(8) of the Enduring Powers of Attorney Act 1985 (which prevents a power of attorney under section 25 of the Trustee Act 1925 from being an enduring power) does not apply to powers of attorney created after the commencement of this Act. | ||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous provisions about attorney acting for trustee | |||||||||||||||||||||||||||||||||||||||||||||||||
Two-trustee rules. | 7. - (1) A requirement imposed by an enactment- | ||||||||||||||||||||||||||||||||||||||||||||||||
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is not satisfied by money being paid to or dealt with as directed by, or a receipt for money being given by, a relevant attorney or by a conveyance or deed being executed by such an attorney. | |||||||||||||||||||||||||||||||||||||||||||||||||
(2) In this section "relevant attorney" means a person (other than a trust corporation within the meaning of the Trustee Act 1925) who is acting either- | |||||||||||||||||||||||||||||||||||||||||||||||||
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and who is not acting together with any other person or persons. | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) This section applies whether a relevant attorney is acting under a power created before or after the commencement of this Act (but in the case of such an attorney acting under an enduring power created before that commencement is without prejudice to any continuing application of section 3(3) of the Enduring Powers of Attorney Act 1985 to the enduring power after that commencement in accordance with section 4 above). | |||||||||||||||||||||||||||||||||||||||||||||||||
Appointment of additional trustee by attorney. | 8. - (1) In section 36 of the Trustee Act 1925 (appointment of trustees), after subsection (6) (additional trustees) insert- | ||||||||||||||||||||||||||||||||||||||||||||||||
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(2) The amendment made by subsection (1) above has effect only where the power, or (where more than one) each of them, is created after the commencement of this Act. | |||||||||||||||||||||||||||||||||||||||||||||||||
Attorney acting for incapable trustee. | 9. - (1) In section 22 of the Law of Property Act 1925 (requirement, before dealing with legal estate vested in trustee who is incapable by reason of mental disorder, to appoint new trustee or discharge incapable trustee), after subsection (2) insert- | ||||||||||||||||||||||||||||||||||||||||||||||||
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(2) The amendment made by subsection (1) above has effect whether the enduring power was created before or after the commencement of this Act. | |||||||||||||||||||||||||||||||||||||||||||||||||
Authority of attorney to act in relation to land | |||||||||||||||||||||||||||||||||||||||||||||||||
Extent of attorney's authority to act in relation to land. | 10. - (1) Where the donee of a power of attorney is authorised by the power to do an act of any description in relation to any land, his authority to do an act of that description at any time includes authority to do it with respect to any estate or interest in the land which is held at that time by the donor (whether alone or jointly with any other person or persons). | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Subsection (1) above- | |||||||||||||||||||||||||||||||||||||||||||||||||
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(3) This section applies only to powers of attorney created after the commencement of this Act. | |||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary | |||||||||||||||||||||||||||||||||||||||||||||||||
Interpretation. | 11. - (1) In this Act- | ||||||||||||||||||||||||||||||||||||||||||||||||
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(2) References in this Act to the creation of a power of attorney are to the execution by the donor of the instrument creating it. | |||||||||||||||||||||||||||||||||||||||||||||||||
Repeals. | 12. The enactments specified in the Schedule to this Act are repealed to the extent specified in the third column, but subject to the note at the end. | ||||||||||||||||||||||||||||||||||||||||||||||||
Commencement, extent and short title. | 13. - (1) The preceding provisions of this Act shall come into force on such day as the Lord Chancellor may by order made by statutory instrument appoint. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) This Act extends to England and Wales only. | |||||||||||||||||||||||||||||||||||||||||||||||||
(3) This Act may be cited as the Trustee Delegation Act 1999. | |||||||||||||||||||||||||||||||||||||||||||||||||
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Repeals | ||||||||||||||||||||||||||||||||||||||||||||||||
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The repeal of section 3(3) of the Enduring Powers of Attorney Act 1985 has effect in accordance with section 4 of this Act and the remaining repeals have effect in relation to powers of attorney created after the commencement of this Act. |
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© Parliamentary copyright 1998 | Prepared 4 December 1998 |