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Duties of A Truste

Duties imposed by law or trust deed

Duty to distribute property - fixed trust and discretionary trust

Duty ot invest the trust property

Can advance capital to a beneficiary who is not yet entitled

Can use income to support the beneficiary

Power to allow the B to live in property owned by a trust

Primary duties - distriute and invest. Discretion

Trustees are subject to fiduciary duties

Equitable dty of care

Complaints:

They have failed to act. - Injunction, replacement trustees, equitable compensation

They have acted outside their powers - transaction will be void, investment will be sold, obligation to restore the trust fund

They have made a poor decision with their powers. Strict liability - s61Trustee Act 1925

Trustee have made a poor decision with their powers. Fiduciary duty. Duty of care and skill - equitable compensation.

Breach of fiduciary duty of loyalty - personal and proprietary liability

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Duty to investment

Trusts aim to provide financial benefits to a beneficiaries over a number fo years

Subject to trust deed

Powers of investment

trustee has to be authorised to make investment. express, stauttory [s3 and s8 Trustee Act 2000], court.

statutory - s3, general power of investment - uncertainty

income/capitsl growth

CAN APPLY for extension of powrs- if you want to invest overseas

can make investment unauthorised if agreement of all beneficiaries - Bs have to match requirements - or can apply to s57 or s1 of variation of trust acts

Duties of trustees in making invesmtent