The Law Reform Commission (LRC) has published its Report on Trust Law: General Proposals. The purpose of the Review is to propose a new legislative basis for the duties responsibilities and powers of trustees and in particular how they deal with and protect trust assets. The LRC propose replacing the Trustee Act 1893 with a modern legislative code. The Report contains 99 recommendations for reform and includes a draft of a Trustee Bill 2008 to implement the recommendations. The Report contains a useful review of the current law on the duties and obligations of trustees and of their powers.
Amongst the proposals contained in the Report are:
- A statutory fiduciary duty to be imposed on trustees to act in good faith together with a general statutory duty of care.
- Trustees should be given clearly stated powers to borrow and the current statutory provisions on 'authorised securities' should be updated.
- Trustees should have an ability to delegate certain administrative functions.