Beneficiary direction rules TOLATA 1996 s. 21
Section 21 of TOLATA 1996 sets rules on beneficiary directions under sections 19 and 20, trustee qualifications under 1925 Acts, and trust opt-outs.
For the purposes of section 19 or 20 a direction is given by beneficiaries if— a single direction is jointly given by all of them, or (subject to subsection (2 a direction is given by each of them (whether solely or jointly with one or more, but not all, of the others), and none of them by writing withdraws the direction given by him before it has been complied with. Where more than one direction is given each must specify for appointment or retirement the same person or persons. Subsection (7) of section 36 of the Trustee Act 1925 (powers of trustees appointed under that section) applies to a trustee appointed under section 19 or 20 as if he were appointed under that section. A direction under section 19 or 20 must not specify a person or persons for appointment if the appointment of that person or those persons would be in contravention of section 35(1) of the Trustee Act 1925 or section 24(1) of the Law of Property Act 1925 (requirements as to identity of trustees). Sections 19 and 20 do not apply in relation to a trust created by a disposition in so far as provision that they do not apply is made by the disposition. Sections 19 and 20 do not apply in relation to a trust created before the commencement of this Act by a disposition in so far as provision to the effect that they do not apply is made by a deed executed— in a case in which the trust was created by one person and he is of full capacity, by that person, or in a case in which the trust was created by more than one person, by such of the persons who created the trust as are alive and of full capacity. A deed executed for the purposes of subsection (6) is irrevocable. Where a deed is executed for the purposes of subsection (6)— it does not affect anything done before its execution to comply with a direction under section 19 or 20, but a direction under section 19 or 20 which has been given but not complied with before its execution shall cease to have effect.
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 21 sets procedural rules for beneficiaries issuing directions under section 19 or 20. Directions can be given jointly or separately by all beneficiaries, provided every direction names the same proposed trustees and no beneficiary withdraws their written direction before execution.
Directions under section 19 or 20 cannot appoint trustees where the appointment would breach section 35(1) of the Trustee Act 1925 or section 24(1) of the Law of Property Act 1925. A trustee appointed under section 19 or 20 has the powers specified in section 36(7) of the Trustee Act 1925.
A trust disposition may exclude section 19 and section 20. For trusts created before the Act, surviving creators of full capacity may execute an irrevocable deed opting out of section 19 and section 20, which invalidates pending directions without affecting past compliance.
When it applies
- Beneficiaries send individual written notices asking a trustee to retire, all nominating the same replacement person.
- Beneficiaries attempt to direct the appointment of a new trustee in violation of legal limits set under section 24(1) of the Law of Property Act 1925.
- Settlors of a trust created before the Act execute an irrevocable deed stating that section 19 and section 20 do not apply to their trust.
What this section does not say
- The core statutory rights of beneficiaries to direct trustee appointment or retirement, which are established in section 19 and section 20.
- Court applications regarding trust property disputes or trustee duties, which are dealt with under other sections of the Act.
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This page reproduces the text of TOLATA 1996 s. 21 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.