Key points

• trustees owe a duty of care to the beneficiaries both under common law and under statute;

• trustees have a duty to provide the beneficiaries certain information including accounts;

• the beneficiaries have no inherent right to disclosure of the trust documents;

• disclosure of trust documents lies with the court’s discretion;

• trustees have a duty to preserve and maximise trust assets;

• the trustees’ power to invest is governed by the Trustee Act 2000;

• trustees can delegate their powers to others but will remain liable unless the delegation complies with the general duty of care;

• certain duties of a trustee can never be delegated such as the exercise of a trustee’s discretion;

• trustees have the power to advance income to infant beneficiaries for their maintenance and to all beneficiaries with a vested interest; and

• trustees have the power to advance capital to all beneficiaries if they can prove it is for their benefit.

Introduction: the office of trustee

The office of trustee carries with it a wide range of duties. Overriding all duties and powers of a trustee is the duty to carry out the terms of the trust and to act in the beneficiaries’ best interests at all times. The duties of a trustee must be carried out with care because failure to carry out a duty may make the trustee personally liable in an action for breach of trust.