Trustees have discretion to exercise their powers within the law and terms of the trust. Their discretion must involve an active mental process, not just allowing a situation to occur through inaction. Courts have ruled that trustees must actively exercise their discretion, as seen in Wilson v Turner where trustees failed to consciously decide how to use trust funds for an infant, and in Re Greenwood where protection for good faith actions only applies if discretion was actively exercised.

1. Chapter6: DiscretionOf Trustees
 It isinherentina trusteespositionthathe mustexercise hisdiscretionandmustdoso in a
varietyof Circumstances withinthe prescribedlimitsof law ortrust instrument.
 Sections9 and 19- Instanceswhere the Trustee Actgivesdiscretionare discretionmustbe
exercisedasanactive mental processandnotallow a situationtoresultmerelythrough
inaction.
WilsonVTurner
Trustee hadpowerto pay or applyincome arisingfromthe trustto or for the maintenance of an
infantbnf.Theydidnot make a consciousdecision,butmerelyhandedoverthe income tothe
infant'sfather. The COA : the moneyshouldbe repaidtothe trust fund.
Re Greenwood
Althoughsection19protectstrusteesif theyactedingood faith,it washeldthat thisprotection
isonlygivenif the trusteeshadactivelyexercisedtheirdiscretion.

2. Chapter7 :