The Fourth and Fifth duties relate to the Trustee’s duty of care and the duty to observe the terms of the trust as to authorised investments and any statutory provisions.
A Trustee is required to take as much care of trust property as, being a prudent man of business, he is accustomed to take of his own.
Augustine Birrell cited Lindley LJ in Whiteley and Learoyd, 33 Chy Div 355:
The duty of a Trustee is not to take such ‘care only as a prudent man would take if he had only himself to consider'; the duty rather is to take such care as an ordinary prudent man would take if he were minded to make investment for the benefit of other people for whom he felt morally bound to provide.”
With respect to investments Augustine Birrell recommends:
Therefore, in considering the duty or corresponding liability of a Trustee in the matter of an investment, go first of all to the instrument creating the Trust, and learn from it what may or may not be done.
This tab updated on 3 June 2015