5. Application of principles in some specific scenarios
It must be stressed that this statement only addresses the termination and creation of trusts. Even in situations where there is a continuing trust estate the changes may cause other tax consequences for trustees, beneficiaries or others which are not dealt with in this statement. For the purposes of this statement we also assume that the changes are legally effective. If, for example, an act by a trustee was beyond its power and did not achieve its purported effect, then different tax issues could arise which are beyond the scope of this statement.