Trustee duties

According to section 1 of the Trustee Act 2000, a trustee has to be prudent in their investment decisions

• true

• false

The standard investment criteria can be found in

• Trustee Act 2000 s. 1

• Trustee Act 2000 s. 2

• Trustee Act 2000 s. 3

• Trustee Act 2000 s. 4

The standard investment criteria require a trustee to diversify and therefore a trustee can not invest more than 50% of a trust fund in one investment.

• True

• False

Section 3 of the Trustee Act 2000

• Is the trustee's duty of care

• Is the standard investment criteria

• states that the trustee can buy/sell/rent/ invest in trust property just like an absolute owner

• Says that a trustee has to ask for advice before making an investment

A trustee has a duty to insure the trust property

• True

• False

A trustee does not have to get advice if

• He is investing less than half the trust property

• All the trustees agree to the investment

• he reasonably concludes that in all circumstances it is unnecessary/ inappropriate to get advice

• false - trustees always have to get advice

a trustee can take account of ethical considerations

• If the trust instrument allows him to

• If all of the trustees agree

• if he is investing less than half the trust property

• If he gets advice first

A remainderman is entitled to the trust capital

• True

• False

The trustee duty of care takes account of the professional knowledge and skills of the trustee

• True

• False

self dealing is allowed if the trustee pays a fair price and does not unduly influence the beneficiaries

• True

• False