Trustees Powers And Duties Flashcards
Buttle v Saunders
1950, Duty to Act in Best financial interest regardless of morals
Turner v Turner
1984 - acting in excess of powers could be breach of duty
Re Wragg 1919
Duty to Invest (old definition- income production) new definition in Harries v CC
Harries v CC
1992 - duty of investment
- Income or Capital growth
Re Power
1947 - Rent Free use of property, power to acquire land
Nestle v Natwest 1996
Modern Trustees entitled to be judged by standard of current portfolio theory (risk of entire portfolio, not individual risk in isolation)
Cowan v Scargill
1985- best interest of beneficiaries regardless of ethical considerations (unless provided for in trust instrument)
Re Vickery
1931 - express clause providing for delegation
Pilkington v IRC
1964 - duty of care of powers of maintenance and advancement
Speight v Gaunt
1883 - must act as prudent man of business as if own affairs
What statutes deal with Maintenance and Advancement (2)
Trustees Act 1925
amended by
Inheritance and Trustees Powers Act 2014
Maintenance is used to distribute what?
Income eg) Dividends or Interest
Advancement is used to distribute what?
Capital
Trustees Duty?
Buttle v Saunders 1950 - best financial interests
Appointment of Trustees
S.36 TA 1925
- must be in writing
S.41 TA 1925
Public Trustee, court appointed trustee
A trust will not fail for want of a trustee
Removal of T
S.39 TA 1925
- min 2 left, at same time as appointment (or if absent or unfit)
S.40 TA 1925
Deed must be drawn out appointing new trustee then property will automatically vest (but shares / land need proper transfer)
Payment of a trustee?
S.29 - professionals trustee payment ‘reasonable remuneration’
S.31 - expenses can be paid (travel / legal fees)
Investment
- duty Re Wragg (1919) income production & Trustees Investment Act 1961 OLD
S.3 TA 2000 replaces & clarifies this
Harries v CC 1992 “income / capital growth’
S.6 TA 2000
General power of investment (s.3) may be extended, restricted or excluded by trust instrument. Applies to all trusts even before Act (s.7)
S.8 TA 2000
Ts have power to acquire land in uk as investment / occupation by ben
Can by modified by settlor (s.9)
DUTY OF CARE
S.1 TA 2000
Dual Test
(1) special knowledge he holds himself to
(2) course of business special knowledge reasonable to expect
S.4 TA 2000
T must have regard for standard investment criteria
- diversification, suitability, duty to review
S.5 TA 2000
Duty to obtain & consider advice on investment unless they consider reasonably unnecessary
S.19 TA 2000
anyone giving advice must be regulated
S.11 TA 2000
May now delegate asset management functions (can’t delegate power to distribute funds)
Who can’t be appointed
Beneficiary
Appointments of agent & being paid
S.12 2000
S.14 2000 - allows payment of agent
S.16 TA 2000
Permits appointment of nominee
S.19 restricts this
S.17 TA 2000
Permits appointment of custodian
S.19 restricts this
Duty to review Delgation
S.22
