W301 UNIT 24: Control of trusts

Saunders v Vautier (1841) allows beneficiaries who are sui juris, sole beneficiaries with a vested interest to end the trust. Extended to multiple beneficiaries if all are ascertained, sui juris, and agree. It does not apply to discretionary trusts per Re Smith [1928].

Under s36 Trustee Act 1925, trustees can be replaced or additional trustees appointed (max four) on grounds like being outside the UK for 12 months, refusing to act, death, unfitness, infancy, or incapacity. The appointment must be in writing, preferably by deed.

A Denley trust, from Re Denley's Trust Deed [1969], is a non-charitable purpose trust that directly or tangibly benefits ascertainable individuals. It may avoid Saunders v Vautier if the trust instrument includes 'present and future' beneficiaries.

Beneficiaries can compel trustees to carry out administrative and dispositive duties via court order, but cannot dictate how duties are performed or compel the exercise of powers. Trustees must only consider whether to exercise powers.

Charitable trusts are overseen by the Charity Commission. Pension trusts require one-third of trustees appointed by employee members and are regulated by the Pensions Regulator (s70 Pensions Act 2004), with complaints handled by the Pensions Advisory Service and Pensions Ombudsman.