Description

The risks to the beneficiary trustee

“… the Trust Deed ... contains, in cl 14.1, a prohibition on self-dealing by trustees who are also beneficiaries. While cl 14.2 provides that a trustee who is not a beneficiary may exercise the power to make a distribution to a beneficiary-trustee, the resolution … under which Claire receives a distribution … is signed not only by [the independent trustee] but also by Claire. Claire should have had no part in the decision to make a distribution to herself. At the very least the evidence indicates a lack of understanding … of the general requirements of the Trusts Act 2019, and in particular s 31, which provides that a trustee must not exercise a power for their own benefit.”

• Cain v Martin at [27]

HIGHLIGHTS
This webinar, which will conclude with a question and answer session, will consider:

• the mandatory and default duties contained in the Trusts Act
• how existing trust terms are to be read in light of these duties
• the extent to which default duties can be modified or excluded
• mandatory and default duties in the context of corporate trustees, and
• adviser obligations relating to the modification or exclusion of default duties

The webinar will also include an update with respect to relevant case law.

WHY ATTEND
The introduction of mandatory and default duties means it is essential that advisers have a clear understanding of their obligations as advisers, the application of the default and mandatory duties to beneficiary-trustees and how to guide trustees with respect to their duties as trustees.

ORIGINAL BROADCAST DATE

24 July 2024

LEARNING OUTCOMES

Attendees will learn:

• how to advise trustees with respect to default and mandatory duties
• specific considerations with respect to trustees who are beneficiaries
• the extent to which default duties can be modified or excluded
• the parameters of reasonable steps to ensure a settlor is aware of the meaning and effect of any exclusion or modification of default duties

SUITED TO

This webinar is targeted at practitioners at all levels but will be of particular benefit to practitioners who advise trustees or who are trustees or directors of trustee companies.

PRESENTER

Vicki Ammundsen, Director, Vicki Ammundsen Trust Law Limited.