Trustee Act 2000
2000 CHAPTER 29
Commentary on Sections
PART VI: Miscellaneous and Supplementary
Schedule 1 – Application of duty of care
134.The First Schedule specifies the circumstances in which the new general duty of care will apply. They have been noted and discussed against the relevant provisions of the Act but in brief a trustee acting under a power conferred by the Act or the trust instrument will be subject to the duty in section 1 in the following circumstances:
when exercising a power of investment or of reviewing investments (paragraph 1);
when acquiring or managing land (paragraph 2);
when appointing or reviewing the appointment of an agent, nominee or custodian (paragraph 3);
in the compounding of liabilities (paragraph 4);
when insuring trust property (paragraph 5) and
when dealing with reversionary interests, valuations and audits under section 22(1) or (3) of the Trustee Act 1925 (paragraph 6).
135.Paragraph 7 makes clear that the duty of care will not apply where it is clear from a trust instrument that it should not.
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