Trustee Powers

Question 1

Trustee Powers

Answer 1

Enumerated + Implied (helpful and appropriate)

1. Sell
2. Lease
3. Incur Expense
4. Borrow (not at CL)

Question 2

Trustee Duties

Answer 2

1. Care
2. Loyalty
3. Invest / Diversify / Earmark / Segregate
4. Account (deliver statement of income/expenses)
5. No delegate (can rely)

Question 3

Trustee Duty to Invest

Answer 3

1. state lists (enumerated)
2. CL prudent person (reas person investing own - each investment scrutinized; no netting)
3. Uniform Prudent Investor Act (prudent investor; entire portfolio)

Question 4

Trustee Duty to Earmark

Answer 4

CL: liable even if not the cause of failure

Mod: only liable w/ causation

Question 5

Trustee Duty Breach Remedies

Answer 5

Ratify
Remove
Damages
Constructive Trust (tracing)

Question 6

Trustee Liability to 3rd Persons - K

Answer 6

CL: pers liable w/ indem unless K said otherwise

Mod: if TP knows of trustee capacity, must sue in that capacity

Question 7

Trustee Liability to 3rd Persons - Tort

Answer 7

CL: pers liable w/ indem if agent committed

Mod: only pers liable if pers at fault