Trustees: Powers and duties Flashcards
Under the Trustee Act, what is the default power of investment?
This gives the trustees the power to invest the funds,
The Trustees must have regard to the:
1) suitability
2) diversification
They must take proper advice by someone who is qualified to give it
What is the trustees duty of care?
The standard of care for a professional trustee is higher as they are being paid for their service.
It can also be higher for trustees who have been appointed on the basis of having particular skills which would make them desirable trustees
Do trustees have the power to acquire land?
Yes they do, s 8 TA 2000. It can be used as an investment or for occupation by a beneficiary.
Can a trustee delegate their powers?
Yes they can s11 TA 2000. They cannot delegate their investment powers except by an agreement evidences in writing. The agent is bound by any restrictions on the exercise of its investment power as a trustee was
What are the dispositive duties of a trustee?
Trustees have a duty to distribute trust assets and must do so as soon as possible.
If instructed, they must distribute income as it arises. They may also have an obligation to accumulate income and add to capital and then distribute it when required
What are the statutory power of maintenance and advancement?
Maintenance: 1) Power to pay income for the maintenance, education or benefit of a minor beneficiary. Also applies to: Vested, future interests.
Contingent interests which carry the intermediate income
Advancement: Power to pay capital for the advancement of a beneficiary whose interest has not yet vested in possession. Applied to: Adult and minor beneficiaries, vested, future interests, contingent interests
