The decision in McPhail v Doulton (1971), whilst momentous, has no impact at all on the fact that trustees in discretionary trusts hold an imperative obligation to fulfill their duty and distribute the trust property, as per the conditions of the trust, whilst the executors of powers have the option of distribution without an accompanying responsibility to do so.
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McPhail v Doulton emphasised that trustees of discretionary trusts are under a duty to survey the class of beneficiaries and inquire into the needs and qualifications of any beneficiary to whom an appointment of trust money was being considered.
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MCPHAIL V DOULTON ESSAY. By admin; 0 Comments; This approach by Sachs LJ has proved to be the most pragmatic, as it places the evidential burden on the prospective beneficiaries whilst removing the potential of invalidating the trust unnecessarily. This would allow them to distribute the subject matter of the trust to the remaining identifiable.
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