Trustees Appointments, Removals and Retirements

Question 1

Who can be a trustee

Answer 1

Adults with mental capacity.
Company can act a as trustee, as long as authorised in constitutional documents

Question 2

Min and max of trustees

Answer 2

Land: at least 2. To ensure its overreached

Trust: one, always better with more.

Land: cannot have more than 4 trustees

Trusts can be have more than 4, but this is impractical.

Question 3

What is s 36(1) for retirement of trustee?

Answer 3

Retiring trustee can be replaced by a new trustee, must be in writing

Question 5

What is s 39 for retirement of trustee?

Answer 5

Allows trustee to retire without being replaced.

Only allowed if there will be 2 trustees left
Trustee must retire by deed
Other trustees must consent by deed

Question 6

What is s 41 for removal of trustee

Answer 6

The court will replace a trustee if it is expedient to do so.
Court makes appointment
Court will only replace if it is not in teh best interests of the trust for them to continue

Question 7

What is s

Question 8

19 of TLATA for removal of trustee?

Answer 8

Beneficiaires can serve a written direction on trustee to retire and appoint person.

Question 9

What conditions must be satisfied for s 19 to apply?

Answer 9

Beneficiaries must all be full age and capacity and taken together are absolutely entitled to the trust property.

Question 10

When does section 19 not apply?

Answer 10

It does not apply if the trust instrument excludes it, or if the trust instrument nominates someone to appoint new trustees

Question 11

S 36 for removal of trustee

Answer 11

Grounds for replacing trustee:
- trustee is dead
- remain outside Uk for more than 12 months
- desire to be discharged
- refuse to act
- unfit to act
- incapable of acting

Question 12

Who effects the replacement in s 36 for removal of trustee?

Answer 12

Personal nominated in trust instruments. Must be in writing.

Question 13

S 41 TA for appointment of additional trustees

Answer 13

Same as removal of trustee. Court will appoint

Question 14

S 19 TLATA for additional trustee

Answer 14

Allows beneficiaries to serve written direction on current trustees requiring appointment of additional trustee

Question 15

What happens if one trustee dies?

Answer 15

The legal title wil devolve to the surviving trustees.

If there is only one surviving trustee left, trustee should be advised to appoint a replacement trustee.