Applies s.14 to proceeds of sale trusts – TOLATA 1996 s.17
TOLATA 1996 s. 17 applies s.14 (court orders) to trusts of proceeds of sale of land, including proceeds from disposition of land held in trust.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 14 applies in relation to a trust of proceeds of sale of land and trustees of such a trust as in relation to a trust of land and trustees of land. In this section “ trust of proceeds of sale of land ” means (subject to subsection (5 any trust of property (other than a trust of land) which consists of or includes— any proceeds of a disposition of land held in trust (including settled land), or any property representing any such proceeds. The references in subsection (3) to a trust— are to any description of trust (whether express, implied, resulting or constructive), including a trust for sale and a bare trust, and include a trust created, or arising, before the commencement of this Act. A trust which (despite section 2) is a settlement for the purposes of the Settled Land Act 1925 cannot be a trust of proceeds of sale of land. In subsection (3)— “ disposition ” includes any disposition made, or coming into operation, before the commencement of this Act, and the reference to settled land includes personal chattels to which section 67(1) of the Settled Land Act 1925 (heirlooms) applies.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Section 17 makes section 14 (applications to court for orders about trusts of land) apply to trusts of proceeds of sale of land. This means a beneficiary or trustee of a trust that holds money from the sale of land can apply to court under section 14.
A trust of proceeds of sale of land is defined as a trust (other than a trust of land itself) that consists of or includes proceeds from selling land held in trust, or property that represents those proceeds. This includes any type of trust – express, implied, resulting, constructive, trust for sale, or bare trust – and applies even if the trust was created before the Act came into effect.
However, a trust that is a settlement under the Settled Land Act 1925 cannot be a trust of proceeds of sale of land. The reference to 'disposition' includes dispositions made before the Act.
When it applies
- The trustees of a family trust sell the family home and now hold the sale proceeds. A beneficiary wants to challenge the trustees' decision to keep the money in a low-interest account and applies to court under section 14 via this section.
- A trustee needs court guidance on whether to invest proceeds from a sale of land in a new property, and the trust is not a trust of land but a trust of proceeds.
- A dispute arises between co-owners of a property that was sold; the proceeds are held in a bare trust, and one co-owner applies for an order to distribute the money.
- A trust holds proceeds from a sale of settled land (heirlooms) but is not a settlement under the Settled Land Act 1925; the trustee seeks a court order about managing those proceeds.
What this section does not say
- This section does not create a right to occupy trust property; that is covered by sections 12 and 13 of TOLATA 1996.
- This section does not define what a 'trust of land' is; that is defined in section 1 of TOLATA 1996.
- This section does not deal with the abolition of the doctrine of conversion; that is in section 3 of TOLATA 1996.
- This section does not apply to personal representatives; their position is covered by section 18 of TOLATA 1996.
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This page reproduces the text of TOLATA 1996 s. 17 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.