Appointment and removal of trustees Flashcards
What is the maximum number of trustees allowed for trusts of land?
Four trustees
What is the minimum number of trustees required for trusts of land?
Two trustees
Who can be a trustee of a trust?
Any person other than a minor
What are the two methods of appointment for trustees during their lifetime?
- Self-declaration
- Transfer on trust
What happens in a will if executors and trustees are the same people?
They become trustees once the rest of the property is distributed
What must executors do if they are not the same people as the trustees?
Transfer property to the trustees
What happens if appointed trustees decline the role?
Alternative trustees need to be appointed
What are the ways alternative trustees can be appointed?
- Express powers in the trust instrument
- Surviving or continuing trustees (s18(2) TA 1925)
- Under general statutory power (s36 TA 1925)
Under what circumstances can alternative trustees be appointed under the general statutory power?
- Death of a trustee
- Trustee abroad for over a year
- Appointed trustee is a minor or lacks capacity
- Trustee wishes to retire, refuses to act, or is unfit
How can the SvV rights of the beneficiaries be used to appoint new trustees?
- In writing - collapse the trust and start again with new trustees
- Can’t be used if the trust instrument contains an express power to appoint trustees
What powers do the court and the Charity Commission have regarding trustee appointment?
Court power (TA 1925 s19) or Charity commission (CA 2011 s 69(1)) to appoint trustees
What considerations must be taken into account when the court is appointing trustees?
- Wishes of the settlor
- Avoiding disputes between beneficiaries
How can trustees be removed?
- Express power in trust instrument
- Statutory power
- Charity Commission Power of Removal
- Retirement
What does TA 1925 s36 provide?
It provides for the replacement of trustees in recognised circumstances.
What does TA 1935 s41 allow?
It allows the court to replace trustees when they become bankrupt, lack capacity, or are a company in liquidation.
How can trustees voluntarily retire?
- By deed if there at least two people or one trust corporation to act as trustees
- Any person with the power to appoint trustees must consent
- Trustees should obtain a formal discharge of liability from the Bs
How can beneficiaries compel a trustee to retire?
- They have Saunders v Vautier rights to compel a trustee to retire
- Required to be in writing and requires agreement of all beneficiaries
- Only when there will be at least two trustees or one trust corporation
