What is the significance of the Trustee Act 2000?
The Act has implications for anyone whose practice involves trust law. It will benefit many trusts and charities, modernising the law relating to the powers and duties of trustees. The legislation will especially aid the administration of many older trusts, intestate estates and home-made wills.
What does the trustee Act do?
An Act to amend and consolidate the law relating to trustees and trust property; to amend in certain respects the law relating to executors and administrators; to amend the Wills, Probate and Administration Act 1898 and certain other Acts; and for purposes connected therewith.
What are the duties and liabilities of trustee according to the trust Act?
A trustee is bound (a) to keep clear and accurate accounts of the trust-property, and (b), at all reasonable times, at the request of the beneficiary, to furnish him with full and accurate information as to the amount and state of the trust-property.
What does the Trustee Act 2000 allow trustees to invest in?
Under Section 8 of the Act, trustees can purchase land “as an investment, for occupation by the beneficiaries or for any other reason”. Once this land has been purchased they are free to do with it what they could if they were the absolute owner; they can sell it, lease it or mortgage it.
What did the Trustee Act 2000 replace?
The new power will replace the power in the Trustee Investments Act 1961. Part III (sections 8-10) introduces a new power that will allow trustees to acquire freehold and leasehold land for any purpose. Part IV (sections 11-27) contains a wide range of measures relating to collective delegation by trustees.
Can trustees delegate their powers?
A trustee may delegate his duties if permitted by the trust deed or in accordance with the terms of the Trustee Act 1925, which permits the appointment of an attorney by deed for a period not exceeding a year. In some cases the trust deed may permit a majority decision to prevail.
What is the trustee rule?
The trustee is either appointed by the settlor or the court if the settlor failed to appoint someone, or if the appointed trustees fail. The trustee must voluntarily accept his or her position. Once accepted, the trustee cannot resign without the consent of all of the beneficiaries or the court.
How is a trustee held accountable?
Trustees must follow the terms of the trust and are accountable to the beneficiaries for their actions. They may be held personally liable if they: Are found to be self-dealing, or using trust assets for their own benefit. Cause damage to a third party to the same extent as if the property was their own.
Does the Trustee Act 2000 apply to executors?
As an executor, you do have a duty to exercise care and skill when administrating the estate under the Trustees Act 2000. This can make those non-professional executors a little more comfortable, but can be a little concerning for beneficiaries to know.
Should trustees be paid Trustee Act 2000?
The general rule under the present law is that trustees should not be paid for acting as such. This rule is founded on the principles that trustees are not allowed to derive any benefit from trust property and that to allow them to be paid might give rise to conflicts of interest and duty.