Administration of trust Flashcards
How many trustees are required for a trust over land vs trust for personalty?
For land it requires two trustees, only one for personalty.
What is the main statute that dictates the administration of trusts?
The Trusts Act 1925.
What scenarios allow a trustee to retire?
1) If the trust instrument gives express powers to retire.
2) s 36 of TA - retiring trustee replaced by new trustee.
3) s 39 of TA - Can retire without replacement if two trustees left or by deed or others consent by deed.
What scenarios allow the appointment of a new trustee?
1) By trustee in writing
2) court appointment
3) beneficiary request
What duties do trustees have?
- Duty to act impartially and unanimously
- Duty to exercise discretions properly
- duty to disclose documents to trustees.
What are the fiduciary duties of trustees?
- Must not put themselves in a position where their own interest conflict
- must not make an unauthorised personal profit from their position.
Can a trustee ever make a personal profit?
Yes where they are authorised by beneficiaries (must be over 18).
What is the self-dealing rule?
Trustee sells property from trust to themselves (or Buys) puts them in conflict of interest. Beneficiaries have right to void the transaction.
What is the rule under competition with the trust?
Where trust includes a business the trustee may not set up their own in competition. If they do they will be liable for any profits made by competing business.
What is remuneration of trustees?
Trustees may not demand payment for there services unless consent by beneficiaries or express provision in trust deed.
What is the portfolio doctrine in administration of trusts ?
Duty to share investments out to diversify portfolio
