Trust 10 - Trustees Flashcards
What general duty is on trustees?
To act
- honestly and
- in good faith,
- for benefit of beneficiaries
What is the difference between trustee duties and trustee powers?
- Powers: authorised but not compulsory
- Duties: mandatory
Who can be trustees?
- No minors
What is the minimum/max number of trustees?
Land - min 2 max 4
Other - min 1 no max
What happens if there’s only 1 trustee who resigns?
The trustee holds the land on bare trust for the Bs until a new trustee can be found:
How does a new trustee of a lifetime trust get appointed after a single trustee has resigned?
- trust deed
- outgoing trustee can appoint
- S v V powers of the Bs
- Court can appoint
How does a new trustee of a testamentary trust get appointed after a single trustee has resigned when:
PRs named as trustees but they want to renounce their position as PRs
PRs have power to appoint new trustees
How does a new trustee of a testamentary trust get appointed after a single trustee has resigned when:
3rd party named as trustees but they can’t act?
PRs will become trustees, then have power to appoint new trustees
How does a new trustee of a testamentary trust get appointed after a single trustee has resigned when:
3rd party named as trustees but they don’t want to act?
- named trustee can nominate their replacement
OR
- PRs can appoint
What methods are there for appointing new trustees for a subsisting trust?
- Any express powers in trust instrument
- outgoing trustee
- Beneficiaries exercising S v V rights
- The court
- Charity Commission for Charitable trusts
In what circumstance does the general statutory power to replace a trustee apply and who is it exercised by:
- death of trustee,
- trustee abroad for over 1 year,
- minor/lacks capacity,
- wants to retire/refuses/unfit
Exercised in writing by:
- persons nominated in instrument
OR - surviving/continuing trustees
OR - If all trustees are dead, by PRs of last to die
In what circumstance does the general statutory power to appoint an additional trustee apply and who is it exercised by:
Exercised in writing by:
- persons nominated in instrument
IF NONE
- current trustees
NOTE - cannot be used to increase trustees to more than 4
How do beneficiaries exercising S v V rights appoint a replacement trustee?
- In writing
- Cannot be used where instrument contains express power to appoint trustees
When shouldn’t the court appoint a trustee?
Where there’s dispute between beneficiaries as to whether they’d be appropriate
How can trustees be removed?
- Check trust instrument
- statutory powers
- Court can where trustee is bankrupt, lacks capacity or is a company in liquidation
- Charity Comission