Trustees: Appointment & Removal Flashcards
(17 cards)
Are you required to accept the office of trustee?
No.
Are trustees entitled to remuneration?
In the absence of an expressly granted right to remuneration, trustees take on the responsibility of their role for no remuneration.
Professional trustees are entitled to reasonable remuneration for their services.
Where there are multiple trustees how must they act?
They must act together.
Should all trustees take an active role in the trust?
Yes and failure to do so may result in them being liable for breach of trust.
Where there has been a breach of trust, how is liability decided?
Where there has been a breach of trust, the trustees who are found to have committed a breach will be jointly and severally liable.
What are the two ways of appointing trustees of a new inter-vivos trust?
- Self-declaration of trust
- A transfer on trust
Who appoints trustees if the intended trustee of a new inter-vivos trust disclaims?
What is the process for appointing trustees of new testamentary trusts?
Same people who are named as executors will be the trustees.
If the testator named someone different as trustee, the executors must transfer the property to them
What happens if a named trustee of a new testamentary trust is unwilling or unable to act?
In the situation where the trustee may predecease the testator, the executors will hold the property on trust until the new trustee is appointed.
Who has the power to appoint replacement trustees for a testamentary trust?
What should trustees do in relation to testamentary gifts to minors?
The PRs need to hold the relevant assets on trust for the minor, investing these assets in accordance with their statutory powers of investment and utilizing powers of maintenance and advancement until the minor attains 18.
However, under s42 Administration of Estates Act 1925, the PRs could instead appoint trustees (usually the minors parent/guardian) and give the legacy to those trustees rather than retaining it. Under this section, it is necessary to appoint at least two trustees or a trust corporation.
What is the process for appointing new trustees of a subsisting trust?
Explain how s36 TA 1925 operates when a trustee needs to be replaced.
- Who is provided with the power to appoint the new trustee; and
- When can the power be exercised?
Explain how s36 TA 1925 operates when additional trustees are being appointed
When the court exercise its statutory power to appoint trustees what principles will it consider?
How does removal of trustees operate?
Explain how retirement of trustees operates (voluntary retirement & retirement at the direction of the beneficiaries)
