Will a trust fail if the trustees refuse office?
No an alternative will be appointed
Are trustees automatically entitled to remuneration?
No (unless expressly granted or professional trustees)
Do multiple trustees have to act together?
Yes
Who can be a trustee?
Adult of sound mind
How many trustees should there be for a trust of land?
Minimum 2, maximum 4
What is the order of who may appoint a trustee for inter vivos trusts where the initial trustee has disclaimed trusteeship and the trust instrument is silent?
- disclaiming trustee
- beneficiaries with saunders v vautier rights
- court
What is the order of who may appoint a trustee for testamentary trusts where the initial trustee has disclaimed trusteeship and the trust instrument is silent?
- Renouncing named executor/trustee
- Third party predeceased = personal representatives
- Disclaiming third party
- If third party doesn’t exercise power to choose = personal representatives
How should trustees be appointed where there is a testamentary gift to a minor?
- personal representatives can hold on trust or
- can appoint at least two trustees
Who can initiate chages to trustees of a subsisting trust?
Trustees or beneficiaries
Who has the statutory power to replace existing trustees for a subsisting trust under s36(1)?
- person named
- continuing trustees (or personal representatives of last surviving trustee)
When can the power to replace a trustee of a subsisting trust be exercised?
- death
- abroad over a year
- minor/lacks capacity
- retires/refuses/unfit
Can refusing/retiring trustees appoint their replacement trustees?
Yes
Who has the statutory power to appoint additional trustees for a subsisting trust under s36(6)?
- person named
- continuing trustees
What is the maximum number of trustees allowed where new trustees are being appointed?
4
What form must appointment of trustees be in?
Writing
How may beneficiaries appoint new trustees of a subsisting trust?
If they have Saunders v Vautier rights
Direct trustees to appoint additional trustees
When may beneficiaries not be able to direct trustees to appoint new trustees?
If trust instrument gives someone an express power
When may the court appoint additional trustees of a subsisting trust?
If no one authorised is willing/able
What will the court take into account when appointing additional trustees?
- wishes of settlor/testator
- not someone disputed by beneficiaries
- promote/impede trust administration
- views of existing trustees and whether reasonable
Who may remove trustees?
- express power
- statutory power to replace
- court/charity commission
What are the requirements for retiring trustees without replacement?
- deed declaring intention
- at least 2 trustees remain
- written consent by deed of co-trustees
- trust property vested in remaining trustees
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Introduction20
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Creation and requirements of express trusts4
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Three certainties27
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Formalities and constitution27
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Beneficial entitlement21
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Purpose trusts30
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Resulting trusts6
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Family homes38
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Trustees21
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Trustee Powers and Duties47
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Fiduciary relationship20
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Liability of trustees35
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Protection of trustees12
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Equitable remedies30
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Liability of strangers14
