Trustees' Duties

INTRODUCTION

Trustees, particularly express trustees, are subject to an extensive array of duties in the performance of trust. These duties include the fiduciary duties as well as a range of other duties which specifically apply to a trustee in the performance of a trust. Some of these other duties, particularly the trustee's duty to observe the terms of the trust, the trustee's duty of care in the management of trust affairs and the trustee's duty to act impartially, are not regarded as fiduciary duties. Moreover the equitable duty of care is considered to be distinct from the common law duty of care in so far as it is formulated to take into account the fiduciary obligation of trustees to act in the best interests of beneficiaries. Trustees may also be subject to a fiduciary obligation to act in the best interest of the beneficiaries in exercise of their powers. This chapter therefore provides an analysis of the main duties owed by trustees apart from their core fiduciary duties. An examination is made of the trustee's duty to carry out the terms of the trust, the trustee's duty of care, the trustee's duty to administer the trust affairs impartially and fairly and the trustee's duty in exercise of powers to perform the trusts honestly and in good faith for the benefit of the beneficiaries.