The duty of trustees to invest
Source: Taxation In Australia Journal Article
Published Date: 1 Jun 2017
In recent times, there has been an explosion in testamentary trusts. Due to the significant income tax and capital gains tax advantages, it is common for a will to create trusts over property on death, rather than having a disposition to the beneficiaries. At the heart of trusts is the duty of trustees to invest. Trustees are armed with power and may invest at their discretion but must act in the best interests of their beneficiaries. They must act impartially and exercise the care, diligence and skill that a prudent person would exercise when investing for others. Trustees must also take into account the factors set out in the Trustee Act while acting. As such, the obligation on trustees to invest is one of the most difficult tasks for trustees to perform. This article sets out the basic components of the duty of trustees to invest.
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Details
- Published By: Robin Speed
- Published On:1 Jun 2017
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