A Last Will and Testament is more than just a list of who gets what. It should be legally sound and easy to interpret. That’s where STEP Provisions become a part of modern Will drafting. These clauses provide consistency and legal strength to your Will.
What are STEP Provisions?
STEP stands for the Society of Trust and Estate Practitioners. This global organisation brings together lawyers, accountants, trustees and estate planning experts. Its goal is to maintain the highest standards in Trust and Estate work.
STEP Provisions are a collection of clauses that make Wills and Trusts easier to understand and more efficient to administer. These provisions give executors and trustees clear instructions and broad powers, reducing the chances of delays or legal complications.
There are two categories of STEP Provisions:
| Standard Provisions | Core clauses that apply automatically when including STEP in a Will |
| Special Provisions | Optional clauses only apply when specifically included |
The 3rd Edition, released in 2023, is the most current version. It reflects recent legal changes and offers more flexible and practical powers than earlier editions.
Why are STEP Provisions Important?
Executing a Will involves navigating many legal and practical responsibilities. Without adequate guidance, even well-meaning executors may face difficulties. Relying solely on older laws, such as the Trustee Acts of 1925 and 2000 often does not go far enough, as they only provide a basic framework.
Including STEP Provisions in your Will allows your executors and trustees to act with greater confidence and authority. These clauses reduce the need for custom legal drafting, making your Will shorter and easier to understand.
Standard Provisions to Be Aware Of
The following STEP Provisions are particularly important:
Trustee Powers
This provision allows trustees to manage your estate in ways that maximise its value for beneficiaries. Trustees receive extended powers, including:
- Investing in a broad range of assets
- Managing and improving property
- Continuing the deceased’s business activities
Conflict of Interest
Many Wills appoint individuals as both trustees and beneficiaries. This can lead to a conflict of interest. This provision requires the involvement of an independent trustee in these situations to ensure fairness and transparency.
Charging for Services
If professionals such as solicitors or accountants act as trustees, they can charge reasonable fees.
Limiting Liability
Trustees are only personably liable for losses if caused by negligence or fraud. Lay trustees, usually friends or family, will not suffer penalties for honest mistakes, especially with the support of a professional co-trustee.
When to Include Special Provisions
Special Provisions offer additional flexibility. There is no requirement to include them, but they can be extremely helpful.
Delegation
Trustees can delegate their responsibilities to professionals, such as solicitors, as long as those professionals are qualified and competent.
Creating a Company
Trustees can establish a company anywhere in the world to manage trust assets or continue a business interest.
Delayed Entitlement
Instead of transferring assets at age 18, trustees can wait until the beneficiary turns 25. This gives younger individuals more time to develop financial maturity.
Using Income for Expenses
Trustees can use trust income to cover Capital Costs such as taxes and maintenance.
Do You Need a Will?
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK laws and regulations are subject to change. Please speak to a professional for advice tailored to your individual circumstances. Will Guardian accepts no responsibility for any issues arising from reliance on the information provided.