Appointment, Retirement, and Removal of Trustees

Question 1

What happens if a Settlor sets up a trust without naming a trustee?

Answer 1

Court can appoint a trustee

Question 2

Once a Trust has been created, does the settlor have the power to appoint any new trustees?

Answer 2

No - unless an express provision provides otherwise

Question 3

Who has the power to appoint additional trustees if the trust doesn’t specify?

Answer 3

Existing trustees

Question 4

A trustee may retire without replacement only if they meet which 2 requirements?

Answer 4

1. Obtains consent by deed of his co-trustees
2. They leave in office at least 2 trustees or a trust corporation

Question 5

A trustee may be replaced where he desires to be discharged provided that a _________ trustee is appointed and the appointment is made in ______. The appointment must be made by the _____ and ________ trustees

Answer 5

replacement, writing, retiring, continuing

Question 6

A trustee can be replaced if he has been domiciled outside the UK for a continuous period for how many months?

Answer 6

12 months

Question 7

What is the maximum no. of trustees that existing trustees can increase to/replace up to?

Answer 7

Four

Question 8

When do beneficiaries have the power to select trustees? (4 requirements)

Answer 8

1. No one nominated in the trust to appoint new trustees
2. Bs are full age and capacity
3. Bs together are absolutely entitled to trust property
4. Bs act unanimously

Question 9

Give 3 situations where a T may be removed from office without their consent

Answer 9

1. Bankruptcy/incapacitated
2. By the Beneficiaries
3. By court order

Question 10

A court may not make any order as to the appointment/removal of trustees whilst determining what?

Answer 10

Disputes in a trust of land