DUTIES OF EXPRESS TRUSTEES

Question 1

three categories of duties at the common law

Answer 1

1. duties of obedience to trsut instrument
2. duties of prudent management
3. fiducirary duties

Question 2

explain the duty obedience to trust instrument in the trusts act

Answer 2

s23 - know terms
s24- act in accordance with terms
s27 - excercise powers for propser purpose

Question 3

explain the duty of prudnet management

Answer 3

s29 - general duty of care
s30 - invest prudently

Question 4

for the duties that arise from the duty of presnte managemnet consider

Answer 4

• any speical knowldge or experinec the trustee holds out as having
• if the perosn acts as a trustee in the course of a buisness or profession consider what is reasomable of that profession

Question 5

what are the sectiosn under s30 invest prudnetly

Answer 5

Section 128: The court can look into whether the trustees had an investment strategy or diversified their risks.

Section 129: The court can offset any losses against gains made from investments.

Question 6

s133

Answer 6

trutees may apply to teh court for discretions as to how they can best excercise powers

Question 7

re mulligan

Answer 7

m died, left trust to wife and nephew for life iiterest , wife and pgg trustees, sold prop and invested mtg w hig interest rates no capital growth, nephew sued PGG for breach of trust
was a breach as the value of trust prop depreciated overtime so not prudent

Question 8

fiduciary duties MANDATORY

Answer 8

s25- honetsly and good faith
s26- act for benefit of beneficarys in accordance w trust

Question 9

fiduciary duties DEFAULT

Answer 9

s34 - avoid conflict between truste and beneficiarys interests
s31- not to use power for own benefit
s36 - not to profit
s37 -Act selflessly

Question 10

thompson v allen

Answer 10

trsut prop was yatcht buisness, a the trustee tries to open a competing yatcht buiness, and was landlord
putting up rent and making a competitor buiness is breach os s34 - not to be in conflcit

Question 11

patchett v williams

Answer 11

p and L appointed as trsutees to adminster farm that was leased to P.
settlor wished for p to buy farm at price set by valuer
p offered a mid vlaue and BENEFICIARIES were unhappy so trustees issued a court order to buy the farm
trutsees cannot buy trust prop as it is a breach of duty s26 to act to benefict the beneicaries should have offered high val or stepped down before the puchase

Question 12

phillips v boardman

Answer 12

p had trust shares in company taht wasnt performing well, b was the solictor to the trustees and he was to help the trust, b and a friend bought majority shares in the same comany for themsleves and the cpmany since benefitted but so did b and friend
brwach as even though they were acting honestly and in best interest they still creates conflict