Office of Trustee and Appointment The first trustee is usually appointed by the settlor., in the case of a lifetime trust or by the testator in the case of a trust created by a will. The settlor transfers the assets to the trustees for the purpose of holding them under the terms of the trust. In the case of a […]
Initial Duties The initial duties of the trustees are to ascertain the extent and nature of the trust property and to understand the terms of the trust document. The trustees must take charge and control of the trust assets. This involves collecting in the assets. Title to the assets should be transferred into their name. Transfers of assets between trustees […]
Overview The obligations on trustees are onerous and exacting. They require the utmost integrity and honesty. The scenarios that arise in the administration of trusts can be complex and leave the trustee with difficult choices between the competing needs and interests of various beneficiaries. A trustee may be a private unpaid individual. He may be (although rarely is) the person […]
Present v Future In some situations, the duty on trustees to act fairly and proportionately requires them to convert certain assets from one form to another, so as not to jeopardise the interests of certain beneficiaries, in particular, future beneficiaries. The courts evolved certain rules in this context. They can be excluded expressly or by implication, and are usually excluded […]
Trusts of land. There is a statutory trust of land when the ownership of land is vested in persons in succession (e.g. present and future interests) without there being a trust in the instrument held, either with or without other property, on a trust vested in a minor (under 18 years). The first category covers most cases where ownership is […]
Trustee Powers A well-drawn trust instrument should contain the necessary and appropriate trustee powers. In the absence of instrument conferring power, recourse must be had to implied powers. The statutory implied powers available in Ireland are extremely narrow and are still largely based on nineteenth-century legislation. It has been proposed to update the legislation for several years. There may be […]
Requirement for Variation Generally, a trust must be implemented and given effect in accordance with its terms. Otherwise, the trustees may be in breach of trust. Apart from the statutory powers, a court will not, save in limited circumstances, allow the performance of acts which constitute a breach of trust. Trust may need to be adapted to meet changed circumstances […]
Power to advise charity trustees Where the trustees of a charity apply to the Charities Regulatory Authority for their opinion or advice respecting the charity or the administration thereof or the property thereof or the application of the property or any question or dispute relating thereto or where the executors of a will containing a charitable devise or bequest apply […]
Breach of trust A trustee may be held personally liable for a breach of his or her duties as trustee or breach of the terms of the trust deed or the will trust. The breach may happen without fault on the trustee’s part. It may be due to negligence in investment or non-investment of trust assets. It may arise from […]