Trustees' Duties & Powers Flashcards
(9 cards)
Can trustees select/ reject investments for moral reasons?
Non-charitable trusts: no, they must invest based on what provides the best financial return
Charitable trust: somewhat yes, they can invest having regard to the charitable purposes of the trust
Do trustees have a duty to make diverse investments?
Yes there must be a diversification of investments.
For small trust non-diverse investments may be okay if there is not much capital to invest
What documents must trustees provide to beneficiaries of a discretionary trust?
The trust deed
The trust accounts
List of trust investments
Who appoints a new trustee if the last remaining trustee has died?
The deceased trustee’s personal representative
How much capital can a trustee advance to a beneficiary? (trust created before 2014)
Up to one half of their entitlement
How much capital can a trustee advance to a beneficiary? (trust created post 2014)
The full amount which they are entitled to
When can beneficiaries direct a trustee to retire?
When they are all of full age and capacity and together absolutely entitled. (only one needs to have satisfied a contingency)
Are trustees permitted to by property outside of the UK under the trustees act?
No, they are only permitted to buy property inside the UK
Can a sole professional trustee charge renumeration?
No, not if they are a sole trustee
