Part II General Powers of Trustees and Personal Representatives

General Powers

19F1 Power to insure.

1

A trustee may—

a

insure any property which is subject to the trust against risks of loss or damage due to any event, and

b

pay the premiums out of the trust funds.

2

In the case of property held on a bare trust, the power to insure is subject to any direction given by the beneficiary or each of the beneficiaries—

a

that any property specified in the direction is not to be insured;

b

that any property specified in the direction is not to be insured except on such conditions as may be so specified.

3

Property is held on a bare trust if it is held on trust for—

a

a beneficiary who is of full age and capacity and absolutely entitled to the property subject to the trust, or

b

beneficiaries each of whom is of full age and capacity and who (taken together) are absolutely entitled to the property subject to the trust.

4

If a direction under subsection (2) of this section is given, the power to insure, so far as it is subject to the direction, ceases to be a delegable function for the purposes of section 11 of the Trustee Act 2000 (power to employ agents).

5

In this section “trust funds” means any income or capital funds of the trust.