Administration of trusts

Trustees—introduction to trustee powers

The trustees' powers may be either:

1. •

   administrative, ie powers relating to prudent management in the discharge of the trustees' duty to maintain the trust estate, or

2. •

   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.

Trustees—duties

A duty is obligatory. Failure of a trustee to perform a duty constitutes a breach of trust.

See Practice Note: Trustees—duties.

Trustees—statutory powers of trustees

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:

1. •

   power to insure

2. •

   power to delegate trusts, powers and discretions by power of attorney

3. •

   power...