Control of Trusts

A trustee can be removed if they are outside the UK for 12 months, refuse to act, wish to retire, have died, are unfit, an infant, or incapable. The appointment must be in writing, and a deed of appointment is preferable.

No, beneficiaries cannot compel trustees to exercise discretionary powers such as investment choices. Trustees must only consider whether to exercise them, as established in Re Brockbank.

Trustees must keep accounts that beneficiaries may inspect, and evidence like share certificates can be inspected. However, they generally need not explain discretions unless there is a legitimate expectation, per Schmidt v Rosewood Trust.

Under S39 Trustee Act 1925, a trustee can retire if not being replaced, provided at least two trustees remain, the remaining trustees consent, and the retirement is effected by deed.

The Act allows the court to approve variations of trust arrangements on behalf of beneficiaries who cannot consent, such as minors or unborn beneficiaries, to benefit the trust as a whole.