Trustees

Question 1

Requirements present for the proper appointment of a trustee

Answer 1

1. Made in a lawful manner.
2. Person must have the capacity to act as a trustee.
3. Must obtain written authorisation by Master to act as trustee.
4. Person must accept appointment.
5. Person must furnish security if requird to do so.

Question 2

Power of subrogation

Answer 2

The power to resign as trustee and simultaneously appoint another in one’s place.

Question 3

When can no valid act be performed

Answer 3

Not until certain specified number of trustees has been appointed according to trust deed.

Question 4

Appointed meaning:

Answer 4

Having obtained the written authority of the Master to act as a trustee

Question 5

Minimum of trustees

Answer 5

Three

Question 6

Section 6 of Act

Answer 6

Trustee cannot perform valid acts unless authorised in writing by the Master.
Trustee will only be appointed if the latter furnishes security to the Master’s satisfaction.

Question 7

When will a trus fail regarding trustees

Answer 7

When a inter vivos trust is created, and the trustee does not accept the appointment the trust will fail unless another person accepts.

Question 8

Trust Instrument

Answer 8

Sets out the duty of the trustees.

Question 9

First duty of trustee

Answer 9

Obtain the original copy of trust instrument end become familiar with its contents.

Question 10

Duties of trustees:

Answer 10

1. Act with care, diligence and skil - Sec 9
2. Open a separate trust bank account - Sec 10
3. Keep proper records and to bee accountable - Sec 11
4. Duty to preserve documents - Sec 17
5. Duty to administer, protect and invest trust assets -
6. Duties towards beneficiaries
7. Duty to only take reasonable remuneration - Sec 22