Q&As
A trust deed allows the trustees to vary the 'administrative provisions' of the settlement. We would like to vary the settlement to allow the trustees to make decisions as a majority (the trust deed is currently silent on how trustees should make decisions). Would this come under the scope of an 'administrative provision'?
Various statutes govern the exercise of trustee powers. For the purposes of this answer it is assumed that there are no special or unusual provisions or objects of the trust. In such circumstances the Trustee Act 1925 (TA 1925) and Trustee Act 2000 (TrA 2000) are likely to be the most relevant statutory provisions.
Ordinarily, there will be no more than four trustees (TA 1925, s 34), and the trustees have a duty to make decisions which are consistent with the objects and powers of the trust. They must act in good faith and avoid conflicts of interest. Any decisions must be made on an informed basis, and the general rule in respect of private trusts (as opposed to, for example, charitable
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