The Trustees have a wide range of powers of investment; the majority derive from the provisions of the following:
- Trustee Act 2000
- Trustee Act 1925
- Standard Provisions of the Society of Trust and Estate Practitioners (1st Edition)
All Trustees owe their beneficiaries a duty of care to ensure that all investments are made and the administration of the Trust is completed with reasonable care. In the event that they do not exercise such care as is reasonable in relation to an objective standard or any additional expertise that they hold themselves out as having, the beneficiaries may sue for breach of Trust. Under the Trustee Act 2000, the Trustees have wide powers to invest in any investment as if they are the absolute owner subject to ensuring that they take reasonable care and take advice at the appropriate time.
In accordance with the Trustee Act 2000, all Trustees should diversify their investments to ensure that there is a balance between the often competing needs of the surviving spouse who is entitled to income only and the ultimate beneficiaries who will receive the capital. However, this can sometimes lead to inflexibility when there is a pressing need to obtain the most income for the surviving spouse and therefore in the Wills we draft this statutory requirement to diversify is often excluded.
Depending on your instructions, our Wills will often have additional powers included to allow the Trustees to advance cash to the surviving spouse if required.