The trustees' powers may be either:
administrative, ie powers relating to prudent management in the discharge of the trustees' duty to maintain the trust estate, or
dispositive, ie powers intended to have an actual effect on the benefits that the beneficiaries become entitled to receive
The distinction, though, may not always be easy to draw but trustees must properly exercise their powers in an impartial manner.
Modern trust documents include extensive powers to enable the trustees to administer the trust property with the maximum possible flexibility to facilitate the simplified running of the administration of trusts.
See Practice Note: Trustees—introduction to trustee powers.
A duty is obligatory. Failure of a trustee to perform a duty constitutes a breach of trust.
See Practice Note: Trustees—duties.
All trustees have certain powers conferred on them by statute, in particular by the Trustee Act 1925 (TA 1925) and the Trustee Act 2000 (TrA 2000), for example:
power to insure
power to delegate trusts, powers and discretions by power of attorney
power...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. 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.
This Q&A considers, if an intestate estate is being divided between two sisters, X and Y. X does not have capacity and has appointed attorneys under a...
HMRC has updated its payment guidance for Stamp Duty Reserve Tax, Landfill Tax and Climate Change Levy to explain the consequences of using an...
The Office of the Public Guardian (OPG) has updated its guidance for England and Wales on family care payments. The guidance sets out the public...
Law360, London: Prime Minister, Andy Burnham, has been urged to introduce a tax on 'extreme wealth' in the upcoming Autumn Budget 2026, a coalition...
Constructive trustsThis Practice Note covers constructive trusts, which represent one of the three types of trust that do not require to be declared or evidenced in writing—the others being resulting trusts and implied trusts, although it is doubtful whether there is any form of implied trust which
Trustees—removal of trusteesA trustee may be removed against their will in any of the following ways:•under an express power in the trust instrument•under section 36(1) of the Trustee Act 1925 (TA 1925)•by court order under TA 1925, s 41•by direction of the beneficiaries under section 19 of the
If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some point
Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid
0330 161 1234