Trustees: Who can be a trustee; appointment, removal and retirement of trustees-FS Flashcards
(10 cards)
Why is the choice of trustee so important when creating an express trust?
Because trustees are entrusted with legal title to the trust property and exercise control over it, often handling significant assets, without direct oversight from the settlor or beneficiaries unless there is fraud or dishonesty.
Who can be appointed as a trustee of a trust?
Any adult with sufficient mental capacity may act as a trustee. This includes the settlor, laypersons, professionals (e.g., solicitors or accountants), or even a corporate body acting as a trust corporation.
What is the minimum and maximum number of trustees for a trust?
A trust over personalty may have one trustee, but land requires at least two trustees for overreaching to occur. Generally, the maximum is four, unless the court permits otherwise
Under what statutory provision can trustees be replaced due to death, refusal, or unfitness?
Under Section 36 of the Trustee Act 1925, the remaining trustees can appoint a replacement trustee by deed, allowing for automatic vesting under Section 40.
What is required for a trustee to retire without replacement under the Trustee Act 1925?
Under Section 39, a trustee may retire by deed if there are at least two continuing trustees, and no replacement is necessary.
When can the court remove or appoint a trustee under the Trustee Act 1925?
Under Section 41, the court may act where it is expedient to remove or appoint a trustee and doing so would be difficult or impractical without judicial intervention.
What is required for beneficiaries to remove or appoint trustees under the Trusts of Land and Appointment of Trustees Act 1996?
Under Section 19, all beneficiaries must be of full age and capacity and absolutely entitled to the trust property, with no contrary intention in the trust instrument.
Can a new trustee be appointed even if no one retires or is removed?
Yes. Under Section 36(6) of the Trustee Act 1925, additional trustees may be appointed by deed, provided the number does not exceed four.
How can trustees delegate their functions under the Trustee Act?
Under Section 25, a trustee may delegate by deed to an attorney for a period of up to 12 months, but they remain liable for the actions of the attorney.
What happens to trust property when a new trustee is appointed by deed under the Trustee Act?
Under Section 40(1a), trust property such as land will automatically vest in the new trustee without further conveyance, except for stocks, which require entry on the company register.
