Protection of trustees

Question 1

Protecting trustees from the outset?

Answer 1

Ouster clause
- If trust if cerated on a formal document – may include an outster clause which entirely remeved liability. – USED SPAIRGNLY
Exemption clauses
- The duty still exists but trustees will be proetcetd from personal liability if they rbeach it
Trustee liability insurance – isnruance against personal liability for breach of trust

Question 2

Protecting trustees during administration?

Answer 2

If sometime is unclear can seek legal advice BUT THIS WILL NOT PREVENT LIABILITY unless the lawyers advice them of other steos

Seeking court directions
- Will then not be laible
S48 AJA application
- Seek a written lega opinion – apply to high court for uahtrsation to rely on that legal opinion
Surrendering discretion to the

Surrendering discretion to the court
- Court making deicisn for them
Seeking beenficary consent
- If all beenfcaire are known and over 18

Unidentified or missing beenficiaries –

Benjamin orders: MISSING BENEFICIARIES
- Court order pemtiting distribution on basis of a parituclar assumption
S27 – UNKNOWN BENEFICAIRES
- Trustees may publish a notice of their intention to distiburte to known beneficiaries two months after the advertsiment
- PLACED IN LONDON GAZEETE, a newspaper in the land and any other newspaper appriproate
Retained funds
- Set aside trust assets to be paid llater
Payment into court – court has legal control over funds

Missing beneficiary insurance –
- Involves an ipfront cot – CHEAPER THAN A BENJAMIN ORDER
Obtaining indemnity from beneficaires
- Beneficaires pomrision to reinbuse the trustees