Rights, powers and duties of trustees

Trustees must understand the complex landscape of their rights, powers and duties under both general law and statutory frameworks. This guidance note outlines critical legal principles that every trustee should know to navigate obligations effectively while safeguarding trust assets and interests.

Topics Covered

• Rights of trustees
• Powers of trustees
• Duties of trustees
• Joint trustees
• Directors of corporate trustees

Essential Insights

• Assess the scope and limits of a trustee’s right to indemnity and reimbursement from the trust fund without exposing personal liability.
• Recognise how trustee powers may be derived from multiple sources and constrained by trust deeds or court orders.
• Consider the nuanced obligations trustees face in exercising discretion and managing conflicts of interest under fiduciary duties.
• Evaluate the legal uncertainties regarding disclosure duties to beneficiaries, especially concerning discretionary trusts and sensitive trust documents.
• Identify statutory delegation frameworks and the consequential responsibilities trustees retain for delegates’ actions.
• Understand the heightened risks for directors of corporate trustees when indemnity rights are limited or trust assets are insufficient.