Trusts Of Land And Overreaching

Trustees duties with regard to acquisition/disposal of property in England & Wales

Prior to the introduction of the Trusts of Land and Appointment of Trustees Act 1996 ("TLATA") there was no power for trustees to invest in land unless the trust deed expressly provided for the power to do so. It was either settled land or held as a trust for sale. The case law held that even if there was an express power for trustees to invest in land, it would not allow the trustees to purchase land for occupation by a beneficiary.

This all changed with the introduction of TLATA. Under section 6(3) the trustees of land have the power to purchase property in England and Wales and Section 6(4) enables this power to be exercised for the purpose of investment, occupation or for any other purpose.