Trust Administration

Question 1

Who is responsible for trust administration?

Answer 1

Trustees as the owners of trust property.

Question 2

Where are the powers of trustees outlined?

Answer 2

Outlined in trust deed.

or

T(S)A 1921 s4

• list of default powers
• exercisable so long as not at variance with the terms/purposes of trust

Question 3

Marquees of Lothian’s CB.

Answer 3

• at variance only includes something expressly prohibited in trust deed
• if expedient for execution of trust even if expressly prohibited

Question 4

Macfarlane v Macfarlane Trs.

Answer 4

If income is insufficient to meet trust purposes, court can authorise trustees to advance capital:

• either a vested or contingent right in the capital
• advance is necessary for the purposes of education and maintenance

Question 5

Wolfe v Richardson.

Answer 5

Unless stated otherwise, decisions must be reached by a quorum

Question 6

Shanks v Aitken.

Answer 6

Trustees with a personal interest do not count towards the quorum.

Question 7

Wyse v Abbott.

Answer 7

All trustees must be consulted of a decision or the decision will be invalid.

Question 8

Malcolm v Goldie.

Answer 8

Consultation is unecessary where it would be pointless or impossible.

Question 9

Duties attached to trustees when making investments?.

Answer 9

TS(A) 1921 s4(A)

• invested inreasonable manner
• authorised and proper
• obtain and consider proper advice
• regard to suitability