Chapter 9: Trustees' Duties When Running a Trust

Duty to act personally and unanimously

1) Co-trustees must take decisions unanimously 2) Trustees must be personally active in running of the trust

Which documents are beneficiaries entitled to see?

1) trust document, or will 2) trust accounts 3) schedule of trust investments

Trustees duty of care

Trustee must take all precautions which an ordinary prudent man of business would take in managing similar affairs of his own (Speight v Gaunt 1883)

Duty to exercise discretions properly

Trustees must exercise their power a) in good faith b) rationally c) for the purpose for which it was created d) with regard to relevant matters e) with regard to all relevant facts f) with regard to any legitimate expectation that a beneficiary may have that the power be exercised in a particular way

Duty to act fairly between beneficiaries

Trustees must not benefit one beneficiary at the expense of another

Newly appointed trustees must

a) ensure they have been properly appointed b) understand what the trust property consists of c) review trust document and associated paperwork d) enquire into past business of the trust e) where chattels are held on trust, ensure proper inventory is drawn up