Trustee Duties and Powers Flashcards
Role of trustee
Look after property for the benefit of another
Who can be a trustee
Adult of sound mind
Who and how do you appoint a trustee
Bs and Ts in writing
Bs if: No express power + All agree + All Absolutely Entitled
Ts if: max 4 trustees
How to remove a trustee
Bs and Ts in writing
Bs if: All agree + min 2 remain
Ts if: Dead, Abroad 1 year, T refuses or unfit to act
When and how can a trustee retire?
Deed
All Ts agree
Min 2 remain
Trustee Administrative Powers
Invest (NOT depreciating assets)
Purchase UK Land
Delegate Power (NOT to B)
How do trustees collectively delegate power?
- Writing
- All agree
Must provide a written policy statement, review appointment and ensure appropriate
Cannot delegate to a B
NOT vicariously liable unless breached duty on appointment or to review
Can a trustee delegate their individual power and how?
Appoint an attorney for a max 12 months.
Notify other Ts in writing within 7 days of appointment
Remain vicariosly liable for appointment
Trustee Duties
- Invest (protect + enhance value)
- Regard to standard investment criteria (suitability + diversification)
- Review
- Seek advice
- Act with reasonable skill and care
- Play an active role / rectofy breaches
Standard Investment Criteria
- Consider Suitability
- suitable type of asset and suitable example of its type - consider diversifying
Shoudl ahve regard to: size, Bs wishes, income or capital, duration of trust
Rules relating to income
If B is an adult: Ts must pay B income as it arises (including if interest is contingent)
If B is a child: Ts must accumulate income that arises but may exercise power of maintenance
Power of mainteance availability and amount
- B is a minor
- For maintenance, education or benefit
- NO LIFE TENANT
Entire share unless pre 1 Oct 2014 in which case ‘reasonable’ amount
Power of advancement availability and amount
- Interest in capital (NOT LT)
- Advancement or benefit; and
- If LT, then LT consents in writing
