Trustees rarely serve a single beneficiary with a single interest. More often one beneficiary wants income today while another waits for capital to grow, or a discretionary class looks to the trustees to decide who gets what. The trustee's job is to hold the balance fairly and to make decisions that will stand up to scrutiny. As a solicitor advising trustees, you'll be the one telling them what fairness requires, how to invest, how to allocate receipts, and how to exercise — and defend — their discretion.
This lesson builds that picture step by step:
- The Duty of Impartiality — what acting even-handedly between beneficiaries means, and when the trust instrument modifies it.
- Impartiality and Investment — how the duty shapes investment choices and the statutory criteria trustees must apply.
- Apportionment Rules and the 2013 Act — the historic rules for splitting receipts and expenses, and how the law changed for modern trusts.
- Exercise of Discretion and Letters of Wishes — how discretionary powers work, what a proper exercise looks like, and the weight of a settlor's wishes.
- Fettering and Court Review of Discretion — how trustees must keep their judgment free, and the limited grounds on which a court will intervene.