The following Private Client guidance note provides comprehensive and up to date legal information covering:
Trustees' powers to administer a trust are set out in statute, mainly the Trustee Act 1925 and the Trustee Act 2000 (TrA 2000) as supplemented by the terms of the trust instrument. Trustees are often given extended powers of investment by way of express provision in the trust instrument. Express powers give the trustees more flexibility in their choice of investment and, in the past, were often used to avoid the complex administrative provisions of the Trustee Investments Act 1961 (which was substantially repealed by TrA 2000).
Trustees’ statutory powers of investment are set out in TrA 2000, s 3 (commonly known as the general power of investment) and apply in addition to powers conferred on trustees by the trust instrument but subject to any restriction or exclusion the instrument imposes (TrA 2000, s 6). The general power of investment applies to trusts and Will trusts created both before and after the commencement of TrA 2000. The general power of investment is very wide; a trustee may purchase ‘any kind of investment that he could make if he were absolutely entitled to the assets of the trust’. However, the power is subject to:
the statutory duty of care
the standard investment criteria
the requirement to take advice—usually, before exercising any power of investment and when reviewing the
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.