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Questions and Answers
Who has the power to appoint a new trustee to fill a vacancy or to replace an existing trustee?
Who has the power to appoint a new trustee to fill a vacancy or to replace an existing trustee?
- The settlor or testator (correct)
- The court
- The personal representatives
- The creator of the trust
Under what circumstances can the court appoint trustees?
Under what circumstances can the court appoint trustees?
- When the settlor or testator does not appoint any trustees
- When the appointed trustees cease to exist
- When the trustee appointed is legally incapable of taking
- All of the above (correct)
What happens if the will does not contain provisions for the appointment of trustees?
What happens if the will does not contain provisions for the appointment of trustees?
- The trust fails
- The personal representatives become trustees (correct)
- The court appoints trustees
- The settlor can appoint trustees at any time
According to the text, how many trustees can be appointed in addition to the existing trustees?
According to the text, how many trustees can be appointed in addition to the existing trustees?
According to the text, who has the power to appoint new trustees?
According to the text, who has the power to appoint new trustees?
According to the text, is there a limit to the number of trustees who may be appointed?
According to the text, is there a limit to the number of trustees who may be appointed?
According to the text, is it necessary to replace trustees who have ceased to hold office?
According to the text, is it necessary to replace trustees who have ceased to hold office?
According to the text, when does a bare power given to two or more persons by name determine?
According to the text, when does a bare power given to two or more persons by name determine?
What is the meaning of 'continuing trustee' as used in the text?
What is the meaning of 'continuing trustee' as used in the text?
According to the text, who can validly make an appointment of new trustees without the concurrence of a refusing or retiring trustee?
According to the text, who can validly make an appointment of new trustees without the concurrence of a refusing or retiring trustee?
What is the mode of appointment required under section 36?
What is the mode of appointment required under section 36?
According to the text, what happens if all the trustees appointed under an inter vivos trust are already dead at the date of the deed?
According to the text, what happens if all the trustees appointed under an inter vivos trust are already dead at the date of the deed?
According to the text, what is the requirement for a trustee remaining out of the United Kingdom for more than twelve months?
According to the text, what is the requirement for a trustee remaining out of the United Kingdom for more than twelve months?
According to the text, what does it mean if a trustee desires to be discharged from all or any of the trusts or powers reposed in or conferred on him?
According to the text, what does it mean if a trustee desires to be discharged from all or any of the trusts or powers reposed in or conferred on him?
According to the text, what is the requirement for a trustee to be considered unfit to act?
According to the text, what is the requirement for a trustee to be considered unfit to act?
According to the text, when is a voluntary trust considered valid?
According to the text, when is a voluntary trust considered valid?
What happens to the trust property on disclaimer by the trustees?
What happens to the trust property on disclaimer by the trustees?
Under what circumstances can a trust fail for want of a trustee?
Under what circumstances can a trust fail for want of a trustee?
Can the settlor appoint new or additional trustees in an inter vivos trust?
Can the settlor appoint new or additional trustees in an inter vivos trust?
According to the Trustee Act 1925, how many trustees can be appointed for any part of the trust property held on distinct trusts?
According to the Trustee Act 1925, how many trustees can be appointed for any part of the trust property held on distinct trusts?
Under what circumstances can a trustee be discharged from their trust according to the Trustee Act 1925?
Under what circumstances can a trustee be discharged from their trust according to the Trustee Act 1925?
Can a sole surviving trustee retire from the trust and appoint a sole trustee to act in their stead if more than one trustee was originally appointed?
Can a sole surviving trustee retire from the trust and appoint a sole trustee to act in their stead if more than one trustee was originally appointed?
Can section 37(1)(c) of the Trustee Act 1925 be overridden by a provision in the trust instrument?
Can section 37(1)(c) of the Trustee Act 1925 be overridden by a provision in the trust instrument?
Study Notes
Appointment of Trustees and the Circumstances in which the Power may be Exercised
- The first trustees of a trust are usually appointed by the creator of the trust (settlor or testator).
- The appointment of the first trustees can be made even if they predecease the testator or if no trustees were originally appointed.
- In the absence of appointed trustees, the court can appoint trustees under discussed powers.
- In the case of a voluntary trust created inter vivos, a valid trust can only be constituted if the trustees are named or identified and are capable grantees.
- Once a trust is completely constituted, it remains valid even if the trustees disclaim the trust or if the settlor dies without communicating the trust to the trustees.
- The court has the power to appoint new trustees if the appointed trustees disclaim the trust.
- A trust will not fail for want of a trustee, except if it is essential that the selected trustees appointed by the settlor alone act as trustees and they cannot or will not undertake the office.
- The settlor only has the power to appoint new trustees if expressly reserved to him by the trust instrument.
- An express power of appointing new trustees is usually not included as the statutory power is considered sufficient.
- The statutory power can be exercised in eight circumstances, including when a trustee is dead, remains out of the United Kingdom for more than twelve months, desires to be discharged from the trusts, refuses to act, is unfit to act, is incapable of acting, is an infant, or has been removed under a power contained in the trust instrument.
- The person or persons nominated to appoint new trustees in the trust instrument can exercise the statutory power.
- The statutory power can also be exercised by the personal representatives or the court in certain cases.
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Description
Quiz: Understanding the Survival of Bare Powers in Estate Law Test your knowledge of estate law with this quiz on the survival of bare powers. Explore the application of the old rule that bare powers do not survive, but determine upon the death of the first named person. Challenge yourself with scenarios involving surviving or continuing trustees, personal representatives, and more.
