trustee duties and powers

Question 1

what are dispositive duties?

Answer 1

relate to distribution of trust property in accordance with its terms

Question 2

what are administrative duties?

Answer 2

management of trust property whilst it is being held on trust

Question 3

what power are trustees permitted to delegate using their statutory powers of delegation?

Answer 3

powers of investment and powers to acquire land.
(trustees can delegate their powers of investment and powers to acquire land but cannot delegate their powers to distribute property to a beneficiary)

Question 4

what do trustee powers do?

Answer 4

they determine what a trustee may do
they are permissive

Question 5

what do trustee duties do?

Answer 5

they determine what a trustee must do
they are mandatory

Question 6

in the absence of express powers set out for the trustees - where can their administrative powers be found?

Answer 6

default powers are set out in the trustees act 2000

Question 7

what does s3 TA 2000 allow a trustee to do as a general power of investment?

Answer 7

it sets out the general power of investment. a trustee may make any kind of investment that they could make if they were absolutely entitled to the assets of the trust

Question 8

what are the 2 standard investment criteria which must be considered when a trustee decides whether to make an investment?

Answer 8

a) suitability [general suitability: is the investment of a suitable kind? and specific suitability: is the particular investment suitable?]
b) diversification

Question 9

what are the 5 principles in Cowan on investment?

Answer 9

1. trustee act in the best financial interests of beneficiaries
2. trustee must balance interest of all beneficiaries (current and future)
3. personal views of trustee are not relevant - must exercise powers fairly and honestly
4. take into account moral and ethical concerns
5. consider if reasonable prudent trustee would act in the same way