Trust Law Duty Of Care

Front 1

Buttle v Saunders

Back 1

Trustees have a duty to acheive the very best for their beneficiaries

Front 2

Speight v Gaunt

Back 2

Trustees must adopt the same standard of care as an ordinary prudent man of business

Front 3

Re Whitely

Back 3

the standard is now SPEIGHT plus must act as if morally bound to provide

Front 4

Re Watermans WT

Back 4

a paid trustee is expected to exercise a higher standard than an aunpaid trustee

Front 5

TA 2000 s1(1)

Back 5

exercise such care as is reasonable in the circumstances

Front 6

Armitage v Nurse

Back 6

exemption clauses can be effective against anything except actual fraud - an intention to deceive

Front 7

Wight v Olswang

Back 7

any doubt over exmption clauses should be construed against the trustee

Front 8

Re Hastings Bass

Back 8

the court may interfere with mistakes in the exercise of trustee's discretion

Front 9

Sieff v Fox

Back 9

RHB can be used where T's had acted on incorrect tax advice

Front 10

Fry v Tapson

Back 10

trustees must act personally. Settlor can include an express power for an individual trustee to delegate

Front 11

TA 1925 s25

Back 11

there is a statutory power to delegate

Front 12

Luke v S Kensington Hotel Co

Back 12

trustees must act jointly and unanimously when exercising powers and discretions

Front 13

Re Flower

Back 13

Trustee's must join in the receipt for money

Front 14

Re Mayo

Back 14

trust for sale, if t's are disagreeing, power to postpone cannot be exercised and the duty to sell must be complied with

Front 15

Pearse v Green

Back 15

Trustees have a duty to provide information and accounts

Front 16

O'Rourke

Back 16

Trustees are under a duty to allow beneficiaries to inspect trust documents and provide info on admin of the trust

Front 17

Schmidt

Back 17

O'rourke doesnt apply to discretionary beneficiaries

Front 18

Re Beloved Wilkes

Back 18

Trustees are not obliged to give the b's reasons for their decisions as to whether or not to exercise discretion

Front 19

Re Londonderrys ST

Back 19

right not to disclose reasons for exercising a discretion prevailed over the rights of a b to information

Front 20

Lloyds Bank

Back 20

t's have a duty to act impartially

Front 21

Bouch v Sproule

Back 21

T's must balance capital and income beneficiaries

Front 22

Bristol and West BS v Mothew

Back 22

trustees owe a fiduciary duty

Front 23

Bray v Ford

Back 23

T' cannot retain any unauthorized profits granted by their connection the trust

Front 24

Keech v Sandford

Back 24

any profits will be held on trust for the beneficiaries

Front 25

Boardman v Phipps

Back 25

applied keech, even if a trustee generates profits for the trust and himself it will still be held on trust, although Boardman was compensated for his role

Front 26

Williams v Barton

Back 26

t's share of the profits willbe held on constructive trust for the b's

Front 27

Buttle v Saunders

Back 27

T's who sell property have an overriding duty to ensure they obtain the best possible price

Front 28

ex parte James

Back 28

sale of trust property to a trustee is voidable by a b even when purchased in good faith and for full value

Front 29

Wright v Morgan

Back 29

JAMES applies even when a trustee has retired, unless a significant period of time has passed-Re Boles

Front 30

Holder v Holder

Back 30

an exception to James-when a t only carried out a minor admin role and there is no conflict of duty

Front 31

Coles v Trescothick

Back 31

t's purchase of b's equitable interest in property will not be voidable as long as T acts honestly and makes full disclosure to B's and pays a fair price

Front 32

Re Thomson

Back 32

T's must not compete with the trust

Front 33

Remedies for breach of Fiduciary Duty

Back 33

The Personal Remedy

A fiduciary is subject to personal liability to make restitution

The Proprietory Remedy

The court may impose a constructive trust of the unauthorized profit or property acquired.

Front 34

Re Strahan

Back 34

a trustee is not liable for
breaches of trust which were committed before he took up his appointment as trustee

Front 35

Head v Gould

Back 35

a solicitor-trustee will not
automatically be regarded as having a controlling influence over his unqualified cotrustee(s)