Trustees rarely stay in place forever. They die, move abroad, lose capacity, simply want out, or fall out so badly that the trust can no longer function. When that happens, someone has to get the right person out and, often, a new person in — and make sure the trust property follows correctly. As a solicitor, you will be the one advising trustees and beneficiaries on exactly how to do this without putting the trust at risk.
The law gives a layered set of tools: powers in the trust instrument first, statutory machinery as a default, and the court as a last resort. This lesson takes you through each, in the order you would work through them in practice.
What this lesson covers:
- Framework and Trustee Numbers — the three routes to changing trustees, how trustees hold property, and the minimum and maximum numbers you need.
- Replacement under s 36 TA 1925 — replacing an outgoing trustee, the qualifying grounds, who can appoint, and the formalities.
- Retirement and Vesting of Trust Property — letting a trustee step down with no replacement, the conditions, how property vests, and continuing liability.
- Beneficiaries' Power under s 19 TLATA 1996 — when beneficiaries can direct retirement or appointment out of court, and when they cannot.
- Court Powers to Appoint and Remove — the statutory and inherent jurisdictions, and the grounds for removing a trustee.