what is trust,power and duties of trustees.....

3. ARSLAN CHOUDARY
Reg #4413-FMS/BBA/F15

5. Equity equips trustees with;
i) numbers of powers
ii) imposes a range of duties.
All these may be modified or excluded by express
terms in the instrument.
Need to know the differences between trust and
power as similar distinction exists relating to duties
and power of trustee.

6. Trustees have discretion as to whether or not they
will exercise a power.
If after a proper consideration they decide on
good faith not to exercise, beneficiaries will not be
allowed to complain.

7. Duties and powers vary according to the character of the
trust.
Some kinds of power are in principle widely available to
trustee – most are now statutory and serve to facilitate the
management of trust.
04/28/17Equity & Trust II (Dr. Zuraidah Ali)

8. A trust is a fiduciary relationship with respect to
property in which one person, the trustee, holds the
legal title to the trust property for the benefit of
another person or persons, the beneficiary.
Essentially, it is a device where one or more persons
manage the property for the benefit of others. The
person who creates the trust is called the settlor, also
known as a trustor or a grantor.

9. Trustee is under an obligation to invest the funds in
authorised securities according to the powers given
by the trustee instruments or under the Trustee Act
Other power;
- sale of trust property
-provision for infant beneficiaries
-power of appointment

10. Certain fundamental duties arising from fiduciary nature
of trustee, eg; duty of loyalty & duty not to make personal
profit out of trust property.
Duties may also be modified by the trust instrument
Other type of duties;
- Duty to maintain custody of documents title
- Duty to invest
- Duties towards beneficiaries
- Duty to provide information
- Duty to maintain equality between beneficiaries,
- Duty to make proper distribution.

11. Power to sell some or all trust property is usually
given by the trust instrument .
In exercising their power of sale, trustee duty is
obtain the best price on behalf of beneficiaries

12. (1) Where a trust for sale or a power of sale of property is
vested in a trustee, he may sell or concur with any other
person in selling all or any part of the property, either
subject to prior charges or not, and either together or in
lots, by public auction or by private contract, subject to
any such conditions respecting title or evidence of title or
other matter as the trustee thinks fit, with power to vary
any contract for sale, or to rescind any contract for sale
and to resell, without being answerable for any loss.
(2) A trust or power to sell or dispose of land includes a
trust or power to sell or dispose of part thereof, whether
the division is horizontal, vertical, or made in any other
way.

13. Trustees are under no duty to insure the trust
property.
They will not be liable for failure to insure if
subsequent damage or loss occurs.
Unless the power to insure is stated in any express
provision in the trust instrument.

14. A trustee is a legal owner.
A trustee has the right to maintain an action with
regards to the trust property.
In the case of a legal claim, only the trustee will be
able to sue
In pursuit of legal claims trustee need to use its
discretion : litigation is a risky business

15. Very appropriate to family type-investment
The object is usually meant for infant beneficiaries
(under 18) who are not yet entitled to income or
capital BUT require financial support during their
minority
Payment by way of maintenance are payments out of
income for necessities. Eg : education
Payment by way of advancement are sums advanced
from the capital