Under s31 Trustee Act 1925, if property is held for a minor beneficiary and the gift carries a right to immediate income, personal representatives may apply the income for which purposes?

• A. Funeral expenses
• B. Capital preservation
• C. Maintenance, education and benefit
• D. Charitable purposes only

Answer: (C)

The main idea tested is how s31 of the Trustee Act 1925 directs the use of income from trust property held for a minor. When property is held for a minor and there is a right to immediate income, personal representatives may apply that income for the minor’s maintenance, education and benefit. This provision ensures that the child’s day-to-day welfare and future development are supported from the income of the trust, not merely saved as capital or diverted elsewhere. For example, the income can be used for school fees, books, clothing, medical expenses, tutoring, and other needs that enhance the minor’s welfare. It does not extend to preserving capital as a goal or to funding charitable purposes unless the trust instrument specifically allows or directs otherwise. Funeral expenses fall outside this standard scope of maintenance, education and benefit.