Relief of trustee from liability to account where there was valid reason for ignorance of the terms of the trust

In Iles v Iles ([2012] EWHC 919 (Ch)) Mr and Mrs I held land on trust for their daughter under the terms of an express declaration made in 1992. Some years later, there was a new declaration of trust in favour of the daughter of land that had been acquired in exchange for the land held under the 1992 trust. The earlier trust entitled the daughter to receive the rents and profits and, on attaining the age of 21, to call for the title to be transferred to her. The later trust provided that she would be entitled to the trust property on attaining the age of 25. Since the land was subject to the 1992 trust, the variations were ineffective. Nevertheless, their effect on the mother’s mind was to reinforce her impression that the daughter’s entitlement would start when she attained the age of 25. Her husband, who had predeceased her had been in charge of the arrangements and she had only a broad understanding of the matter based on whatever explanations he had given to her. Although she had to account for rents and profits from the time her daughter attained the age of 25, she was relieved from liability to account for rents for the period between her daughter’s 21st and 25th birthdays by virtue of section 61 of England’s Trustee Act 1925.

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