Solicitors Qualifying Examination (SQE) Practice Exa\

When a trustee is considering making a payment to a beneficiary who has an interest in capital, it is essential that the trustee obtains consent from anyone who has a prior interest. This is because the presence of a prior interest could restrict or affect the rights of the beneficiary, as well as the interests of the other parties involved.

Trustees have a fiduciary duty to act in the best interests of all beneficiaries and the trust as a whole. Therefore, if there are multiple beneficiaries or if other individuals have rights in relation to the capital, those interests must be respected and consented to prior to any distribution. It helps ensure that the trustee does not inadvertently breach their duties by making a payment that could conflict with the rights of others.

The requirement for such consent helps to protect the integrity of the trust and ensures that all interested parties are adequately considered before capital is distributed, thus maintaining equitable treatment among beneficiaries. This also reflects the need for a clear legal framework when managing trust assets to prevent disputes that may arise from premature or unauthorized distributions.