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Trusteeship, Wyle - position of trustee extremely exacting one and…
Trusteeship
Rule in Hastings v Bass
Sieff v Fox advisers to trustees wrongly advised about tax conseqeunces, tax liability arose- when trustee acts under discretion given to them by terms of trust and free to decide discretion, but effect of act is different from what was intended - court intervenes if clear had they not taken into account wrong considerations
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Pit v Holt only applies where breach of trust, mere misunderstandings of effect of an action not sufficient (UK SC) - major limitation
Greene v Coady pension plan in deficit, decision to wind it up, options to wind up now and employer contribute or wait till deficit gone - trustees voted to take contribution now, court - look through vision of trustee and not with benefit of hindsight (Irish HC) - not liable acted honestly, reasonably and in good faith for best interests of the beneficiaries
make decision based on what trustees knew or ought to have known, trustees exclude irrelevant matters
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Duty to invest
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authorised investments
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Stacey v Branch act honestly as a prudent man, in selecting investments take as much care as a prudent business man - duty to avoid investments potentially hazards
*Learoyd v Whitely - standard of care - invest in authorised investments - behave as an *ordinary prudent man of business - acting for those morally obliged to provide for
Spencer v Kinsella trustee given absolute discretion in how to deal with trust property - held - even with absolute discretion still need to carry out care with reasonable care and prudence
investments separate - if make 2 investments 1 a big success the other a loss, can take benefit and sue for the loss - Dimes V Scott
Bartlett v Barclays Bank used trust mone to build 2 unauthorised construction projects, 1 made money other lost, successfully argued connection between both
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trustee powers
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Trust for Sale
s14 1893 act empowers trustee to sell any property he holds under trust which is subject to depreciation
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Power of sale
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Howe v Dartmouth - power to sell may become duty to sell - preserving trust property not always practical - for example if assets of wasting nature like stable of race horses
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Duty to Distribute
Delany - trustee obligation to identify those entitled under trust and take necessary steps to ensure trust distributed in accordance with terms
s49 -succession act 1965 - immune from liability if he public notice of intended distribution 6 weeks prior to distribution
Re Benjamin testators son disappeared, entitled to share in fathers estate - court held - son presumed dead and gave trustees liberty to distrbiute share- allowed after 7 years
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Trustee
Appointment
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s10 Trustees act 1893 - trustee may be appointed in writing - exercised by person nominated for purpose appointing new trustees
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termination
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removal
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Arnott v Arnott could be removed by plaintiff if trustee uncooperative and making trust basically inopperable - persistent non-cooperation , - can also apply to situations of dishonesty, incompetancy - could remove if welfare of the beneficiaries demanded it
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Moore v McGlynn defendant discharged from performacne where set up rival business in competition to what he was a trustee of - personal interests and and duty to trust may conflict (conflict of interest)
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