DUTIES OF TRUSTEES

costafortune
Mind Map by costafortune, updated more than 1 year ago
costafortune
Created by costafortune about 7 years ago
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Degree Equity and Trusts Mind Map on DUTIES OF TRUSTEES, created by costafortune on 05/01/2013.
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DUTIES OF TRUSTEES
1 s1 TA 00 statutory duty of care
1.1 Sch1 Application of duty of care
1.1.1 Duty doesn't apply if contrary provision in will
1.1.1.1 RE WHITELEY common law duty then applies
1.1.1.1.1 Ordinary prudent person of business
1.2 Duty to act fairly for both life tenant and remainderman
2 s3 TA 00 Trustees can invest in same kind of investments as absolute owner
2.1 Subject to exception of Land, comes under s8 TA 00
2.2 Must have regard to 'Standard Investment Criteria' s4
2.2.1 Suitability
2.2.1.1 Diversity
3 s5 TA 00 Must obtain proper advice
3.1 Remember s5(3) Unnecessary or inappropriate & (4) qualified person to give that advice
4 If trust includes controlling interest in company
4.1 RE LUCKINGS WILL TRUST get a place on the board or receive all the info a member would have
4.1.1 Consider the advice and act on it
4.1.2 If trustee does not act proactively, can be held personally liable to the trust
4.1.2.1 DEFENCE only if acted honestly and reasonably and ought fairly to be excused
4.1.2.1.1 s61` TA 1925
5 s31 TA 1925 powers of maintenance. In respect of a minor's maintenance, education or benefit
5.1 A discretionary power
5.1.1 Paid from the income so for the person with life/vested interest
5.1.1.1 WELLESLEY v WELLESLEY Court has authority to allow payment of maintenance out of minor's property
6 s32 TA 1925 power of advancement. For the beneficiaries benefit
6.1 PILKINGTON v IRC for requirement for advancement. Must improve the material situation of the beneficiary OR establish him in life
6.2 Paid from Capital, so for the remainderman/contingent interest
6.2.1 But remember no advancement that may prejudice the life tenant
6.2.1.1 Unless sui juris and consent in writing otherwise no advancement
6.2.1.1.1 Life tenant cannot apply for advancement of capital
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