Administration of Trust [15th Post (Power of Advancement v Power of Maintenance)]
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Power of Maintenance v Power of Advancement
1. Maintenance only applies when the beneficiaries is a minor while an advancement can be made to a beneficiaries at whatever age.
2. Payments by way of maintenance are payments out of income to provide for routine necessities such as education, clothing, food and lodging. Payments by way of advancement are sums advanced from capital to cover major costs such as setting up the infant in his profession, buying a business, or a house for him on marriage
3. Both advancement and maintenance are powers given to a trustee and is not a duty of a trustee.
4. In a situation involving power of maintenance, a remainder of a trust is entitled to maintenance even where the first beneficiaries is not entitled for the income under such trust (who only entitled the capital of the trust).
In a situation involving power of advancement, a remainder is not entitled to advancement without written consent from a sui juris first beneficiary.
with regards to limb 4, in view of remainder; 'maintenance' is out from income from the successful investment of trust fund - therefore it is by no means affect the interest of first beneficiary who entitled to the capital. 'advancement', on the other hand, is out from capital of trust fund - therefore his prior consent is pre-requisite.