Appointing and retirement trustees Flashcards
(12 cards)
How many trustees do you need
2-4
Who can be a trustee?
Mentally capable
Trustee wants to retire
Appoint replacement (s39 TA)
* appoiinted by remaining trustees or trust doc
* appoint by deed
Appoint without replacement
* 2 trustees left after retiring
* retire by deed
* other trustees consent by deed
Who can force trustees to retire + replace them?
- Trust doc
- trustees
- beneficiaries
- court order
Requirements for trustees to force a trustee to retire + replace them
Trustee is
* minor
* mentally incapable
* outside UK for over 12 months
* want to retire
* disclaim
* DEAD
+ appoint replacement by deed
Requirements for beneficiaries to force trustee to retire
Beneficiaries written notice + they must be:
* over 18 + mentally capable
* absolutely entitled (contingent interest filled)
Trustee retire by deed as long as:
* 2 remaining trustees
* rights protected
* replacemnet appointed
Court order to retire trustee?
Must be in best interest of trust - expediant + not out of mere dislike
Purpose of appointing additional trustees
Dont want to retire/replace existing trustees but want to add more (max is 4)
Who can appoint additional trustees?
- Trust doc
- court order (if in best interets)
- trustees
- beneficiaries (over 18, capable + full entitlement)
There are 2 trustees left and one dies…
Legal title passes entirely to surviving trustee + appoint another trustee
When may someone want to appoint an attorney?
Cannot perform trustee duties for temporary time period
Process to appoint attorney
- Written notice to all other trustees within 7 days of delegating
- delegate for max 12 months
- fully liable for attorney’s actions
- can also delegate duty to invest to financial advisor
