Trust 14 - Protection of Trustees

Question 1

How can trustees be protected from the outset?

Answer 1

• Ouster cause - trust deed removes duty
• Exemption clause - limits liability for breach
• Trustee liability insurances

Question 2

How can trustees be protected during administration?

Answer 2

• seeking directions - Expensive
• s48 to rely on Counsel - cheaper
• Surrendering discretion to the court - T’s can’t agree or conflicted exceptional
• Obtaining beneficiary consent

Question 3

What is required to get consent from beneficiaries?

Answer 3

• know who they all are
• all over 18
• all sane

(if only get some to consent, will have a defence against those Bs).

Question 4

What is the process for s.48?

Answer 4

• get written legal opinion
• apply to high court for authorisation to rely on that opinion

Question 5

How can trustees protect themselves from Unidentified beneficiaries?

Answer 5

• Benjamin Order
• s.27 Notice
• Retain funds to satisfy missing beneficiaries
• Pay money into court
• Insurance
• seek indemnity from known beneficiaries

Question 6

In what circumstances is a Benjamin Order used?

Answer 6

• know of existence of a beneficiary but can’t find them (assumes missing B is dead)

Question 7

What is a s.27 notice?

Answer 7

notice placed in:
- London Gazette
AND
- Newspaper covering land involved
AND
- other appropriate newspaper

Question 8

In what circumstances is a s.27 Notice used?

Answer 8

• protection against unknown beneficiaries
• does not protect Bs just Ts (although C could claim any undistributed assets from T).