Evaluate how the powers granted to trustees help serve beneficiaries (25 marks)

Where are trustee powers mainly found?

In the Trustee Act 2000

What is the purpose of trustee powers?

To help trustees manage trust assets and protect beneficiaries’ interests

What general duty must trustees always follow?

They must act in good faith and in the best interests of beneficiaries

What is the most important trustee power?

The power of investment

What does the power of investment allow trustees to do?

Invest trust assets as if they were their own to grow the trust fund and produce income

What principle was established in Cowan V Scargill?

Trustees must act in beneficiaries’ best financial interests, not according to personal opinions

What does the power to acquire land allow trustees to do?

Buy land either as an investment or for beneficiaries to live in

How can acquiring land benefit beneficiaries?

Through housing opportunities or increased trust value

What is the power to appoint agents and nominees?

Trustees can appoint professionals such as accountants, lawyers, and investment managersD

Do trustees remain responsible after appointing professionals?

Yes, they must still supervise them properly

What principle came from Learoyd V Whiteley

Trustees must act carefully and prudently

What is the power to receive remuneration?

professional trustees may charge fees for their servicesw

what is an advantage of trustee remuneration?

it encourages skilled and professional trust management

what is a disadvantage of trustee remuneration?

fees slightly reduce trust assets

why is the power to add or remove beneficiaries important?

it allows trusts to adapt to changing family circumstances like births, deaths, and divorce

how does adding or removing beneficiaries help a trust?

it keeps the trust flexible and fair

what does the power to vary the trust deed allow trustees to do?

updated outdated trust terms to suit modern conditions

what does the power to accept and distribute assets allow trustees to do?

accept additional trust assets an distribute assets when needed

what is an advantage of the power to distribute assets?

it avoids costly court applications and beneficiaries receive funds more quickly

why is the power to retire and appoint new trustees important?

it ensures the trust continues smoothly and allows new trustees with better skills to join

which trustee powers are considered most important?

investment, distribution of assets, and appointment of professionals

why are trustee powers effective?

they provide flexibility in managing trusts

what duties must balance trustee powers?

honesty, loyalty,wha and care

t principle was established in Keech V Sandford?

trustees must avoid conflict of interest