‘Whether or Not the Law Relating to Modern Trustees’ Power and Duties have Achieved a Balance between Managing the Trust Assets and Protecting the Interest of the Beneficiaries: A Critical Analysis’

Abstract

The purpose of this article is to critically analyse with the reference of appropriate authority whether or not the law relating to modern trustees’ power and duties have achieved a balance between managing the trust assets and protecting the interest of the beneficiaries.The duties, power and responsibilities of trustees are normally set out in the trust documents, at least in part. In this regard the range of underpinning statutory provisions contained, in particular, in the Trustee Acts 1925 and 2000 and the Trusts of Land and Appointment of Trustees Act 1996. However there is a common law standard of duty expected of trustees and that it has been modified under s 1(1) of the Trustee Act 2000 in a range of situations. As we know fiduciary obligations are particular – and peculiar –obligations recognized by equity. In certain circumstances, typically in trusts but also in agency and other relationships, equity will require one party to the relationship, called the ‘fiduciary’, to act in the best interests of the other, called the ‘principal’. Failure to do so will mean that the first party commits the equitable wrong of breach of fiduciary duty vis-à-vis the second. In the case of a typical trust, the trustee is a fiduciary who must act in the best interests of his principals, the beneficiaries. I am of the opinion that, the law relating to modern trustees’ power and duties have achieved a balance sufficiently between managing the trust assets and protecting the interest of the beneficiaries. For the purpose of this research doctrinal research method has been applied. The doctrinal research method was more appropriate to apply primary and secondary data in this research.

DOI: 10.5901/mjss.2015.v6n2p386