Appointment Removal And Retirement Of Trustees Flashcards
Who can be a trustee?
Most adults with mental capacity, must be 18 or over.
Company can also act as trustee, as long as it is authaorised by constitutional documetns and there is also a person with them.
What is the minimum and max number of trustees
At least 2 human trustees for land
For personalty , can have sole trustee
Trusts over land cannot have more than 4 Trustees.
Personality can have more than 4, but is not practical.
Where is the appointment, removal and retirement f trustees shown?
Declaration of trust MAy contain express powers, but if not, statute provides wide powers for this.
Powers that trustees have are in Trustees Act 1925
Powers that beneficiaries can exercise are in Trusts of Land and Appointment of Trustees Act (TLATA)
What does the Trustees Act say about the retirement of a trustee?
Retiring trustee must be replaced by appointment of NEW trustee.
Person nominated in trust instrument must do this, but if not, the continuing trustee.
Appointment MUST be in writing, a deed meets all requirements.
A trustee CAN retire withotu being replaced - as long as there are at least 2 trustees left, the trustee retires be deed, and the other trustees CONSENT by deed.
Is a trustee who has retired liable for breaches of trust?
The remain liable for their OWN breaches, but will not be liable for future breaches, UNLESS they retired to FACILITATE the breaches
What does Trustee Act state about the grounds for replacement of trustees?
Trustee is dead
Remains outside UK for more than 12 months
Desires to be discharged (retires)
Refused to act
Is unfit to act
Is incapable of acting
Is a minor
Who effects the replacement of trustees in Trustees Act?
Person nominated by trust instrument, if not,
Continuing trustee, including a retiring trustee if they are WILLIN.
If all trustees have died, PRs of last surviving trustee.
When will the court replace a trustee, under Trustees Act?
Court will replace tested if it is expedient to do so, and is otherwise inexpensive t, difficult or impractical to appoint without the courts assistance.
Court makes appointment folllowng an application by the trustees or the beneficiaries
The court will only replace a trustee if it is not int eh best interests of the trust for them to continue
When can the beneficiaries retire a trustee, under TLATA?
Beneficiaries can serve a written direction on trustee or trustees to retire and appoint another.
ONLY applies if they are of full age, capacity and taken together absolutely entitled to trust property.
What does Trustee Act state about the appointment of additional trustees?
Person nominated in trust instrument, and if not, continuing trustee, will appoint.
Cannot be more than 4 trustees once the additional appointments are made.
States that must be in writing.
Court will appoint a new trustee if it is expedient to do so, and will make the appointment following an application by Trustees or beneficiaries.
What does TLATA state about appointment of additional trustees?
Beneficiaries can sere a written direction on current trustees, requireing the appointment of an additional trustee. Same conditions as TLATA removal.
What happens at the death of a trustee?
If 2 or more trustees are appointed, they will hold legal title to trust property as joint tenants, therefore will be devolved to surviving trustees.
If there is only one surviving trustee left, that trustee should be advised to appoint a replacement trustee.
When should a trustee appoint an attorney?
If trustee is concerned that they might not be able to perform their functions in running the trust for a period of time, they should consider delegating those functions to an attorney.
How should the delegation of a trust to an attorney be made?
Made by deed, can run for a period of up to 12 months. Written notice about this delegation must be given to other trustees and person with power to appoint new trustees
