Trustees Appointment And Removal

Question 1

Qualifications required for a trustee?

Answer 1

1.at least 18 and has mental capacity
2. May be an individual, professional trustee or a trust corporation.

Question 2

Which 3 people cannot act as a trustee?

Answer 2

1. Bankrupt
2. Has criminal convictions
3. Disqualified from acting as a company director

Question 3

How many trustees must be appointed

Answer 3

No minimum or maximum number

Question 4

Why should too many trustees not be appointed?

Answer 4

As they have to act with unaniminity so less chances of issues

Question 5

Number of trustees for trusts of land?

Answer 5

At least 2 trustees and not more than 4 trustees

Question 6

2 ways a new trustee can be appointed?

Answer 6

1. Court may appoint addiotional trustees.
2. If the beneficiaries are of full age and capacity and are absolutely entitled to the trust property have the power to appoint a subsitute for a trustee who lacks capacity.

Question 7

When can a trustee be replaced

Answer 7

1. Dies
2. Refuses to act
3. Remains outside the uk for more than 12 months
4. Becomes unfit to act due to breach or bankrupcy
5. Is incapable to act
6. Wants to be discharged.

Question 8

Who appoints a new trustee in order of priority

Answer 8

1. Anyone named in the trust document
2. The surviving or continuing trustees
3. The personal representatives of the last surviving trustee
4. The court

Question 9

Is there an obligation to replace all outgoing trustees?

Answer 9

No obligation

Question 10

How must the appointment be made>

Answer 10

Made in writing and a deed is not necessary.

Question 11

When do beenficiaries have the power to control the trustees?

Answer 11

Only have the power if the terms of the trust have been breached.

Question 12

The beneficiaries can select the trustees if?

Answer 12

• no one has been nominated in the trust document to appoint trustees
  -they are over 18 and have mental capacity
• the beneficiaries together are absolutely entitled to the trust property
• the beneficiaries act unanimously to select the trustee.

Question 13

When can a trustee retire from being a trustee without a replacement if:

Answer 13

1. They obtain consent from all other trustees by deed
2. They obtain consent from the person with the power to appoint trustees by deed
3. They leave at least 2 trustees or a trust corporation in office.

Question 14

When does the court have the power to remove a trustee?

Answer 14

As long as one is being appointed in their place.

Question 15

If a trustee dies, retires or is unfit to act, who can remove them?

Answer 15

The remaining trustees have the power to remove them.

Question 16

What document must trustees use to retire

Answer 16

Must retire by deed and reminaing consent of the other trustees