Trustee appointment, retirement and removal Flashcards
Who can be a trustee?
Most adults with mental capacity can be appointed as a trustee.
A company can also be appointed as a trustee so long as it is authorised to do so by its constitutional documents.
How many trustees should there be in a trust of land?
At least two human or a sole trust corporation.
There should be no more than four.
How many trustees can you have in a trust of personalty?
One, but you can appoint more.
There is no maximum.
What three ways can a trustee retire?
The trust instrument may contain express wording
Section 39 of the Trustee Act (allowing a trustee to retire without replacement provided conditions are met)
Section 36(1) of the Trustee Act (where a retiring trustee must be replaced)
How can a trustee retire without being replaced under section 39 of the Trustee Act?
There should be two trustees or a trust corporation left
The trustee will retire by deed
The other trustees consent by deed.
How can a trustee retire under section 36(1) of the Trustee Act?
A retiring trustee must be replaced by the appointment of a new trustee.
The person nominated in the trust instrument or the continuing trustee will appoint a new trustee.
The appointment must be made in writing and ideally in deed due to the fact it automatically vests the trust property in the new trustee.
Is a retired trustee liable for breaches of trust?
Only for their own breaches
They will not be liable for future breaches unless they retired to facilitate them.
Which four ways can a trustee be removed?
Express wording in the trust instrument
Section 36(1) of the Trustees Act (replacement of a trustee)
Section 41 of the Trustees Act (where the court can replace a trustee)
Section 19 of TLATA (beneficiaries can direct a trustee to retire)
