Enjoy SmartLeges Premium!

Subscribe to SmartLeges Premium and enjoy the following advantages:

  • Consult as many laws as you need with no additional charge
  • Consult almost any law in several countries with the new advanced search engine. All legislation within reach!
  • Enjoy all SmartLeges functions without restrictions
See the plans

An essential and free application for professionals and students in the legal sector

Read more
 

Sign up for free!

Would you like to consult this and other laws complete?

Sign up for free to consult all the laws of SmartLeges in your mobile phone or tablet, as well as underline text, add notes...

Sign up for free!

Email Facebook Twitter Google Linkedin Tumblr

TRUSTEE ACT 2000

UK Public General Acts

Version 10/03/2015

2000 CHAPTER 29

Default Geographical Extent: E+W


  • Part I. The Duty of Care
  • Part II. Investment
  • Part III. Acquisition of Land
  • Part IV. Agents, nominees and custodians
    • Agents
    • Nominees and custodians
    • Review of and liability for agents, nominees and custodians etc.
    • Supplementary
  • Part V. Remuneration
  • Part VI. Miscellaneous and Supplementary
  • Version 10/03/2015
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/04/2013
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 02/01/2013
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/07/2012
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 14/03/2012
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 05/07/2010
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/04/2010
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/01/2010
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 26/11/2008
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/04/2008
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 18/03/2008
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 27/02/2007
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 13/10/2003
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 01/02/2001
  • Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140 Notice: Undefined variable: library in /var/www/vhosts/smartleges.com/juris/application/views/scripts/site/law-content.phtml on line 140
  • Version 23/11/2000

Introductory Text

Trustee Act 2000

2000 CHAPTER 29

An Act to amend the law relating to trustees and persons having the investment powers of trustees; and for connected purposes.

[23rd November 2000]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Annotations:

Modifications etc. (not altering text)

C1 Act power to apply conferred (26.11.2008) by Pensions Act 2008 (c. 30), ss. 68(2), 149(2)

C2 Act applied (5.7.2010) by The National Employment Savings Trust Order 2010 (S.I. 2010/917), arts. 1(3), 16


Part I
The Duty of Care



1 The duty of care.

(1) Whenever the duty under this subsection applies to a trustee, he must exercise such care and skill as is reasonable in the circumstances, having regard in particular—

(a) to any special knowledge or experience that he has or holds himself out as having, and
(b) if he acts as trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession.
(2) In this Act the duty under subsection (1) is called “the duty of care”.

Annotations:

Modifications etc. (not altering text)

C3 S. 1(1) applied by 1993 c. 10, s. 73F(5) (as inserted (27.2.2007) by Charities Act 2006 (c. 50), ss. 39, 79(2); S.I. 2007/309, art. 2, Sch.)

C4 S. 1(1) applied by 1993 c. 10, s. 73B(2) (as inserted (18.3.2008) by Charities Act 2006 (c. 50), ss. 36, 79(2) (with Sch. 10 para. 12); S.I. 2008/751, art. 2, Sch.)


2 Application of duty of care.

Schedule 1 makes provision about when the duty of care applies to a trustee.

Part II
Investment



3 General power of investment.

(1) Subject to the provisions of this Part, a trustee may make any kind of investment that he could make if he were absolutely entitled to the assets of the trust.

(2) In this Act the power under subsection (1) is called “the general power of investment”.

(3) The general power of investment does not permit a trustee to make investments in land other than in loans secured on land (but see also section 8).

(4) A person invests in a loan secured on land if he has rights under any contract under which—

(a) one person provides another with credit, and
(b) the obligation of the borrower to repay is secured on land.
(5) “Credit” includes any cash loan or other financial accommodation.

(6) “Cash” includes money in any form.

4 Standard investment criteria.

(1) In exercising any power of investment, whether arising under this Part or otherwise, a trustee must have regard to the standard investment criteria.

(2) A trustee must from time to time review the investments of the trust and consider whether, having regard to the standard investment criteria, they should be varied.

(3) The standard investment criteria, in relation to a trust, are—

(a) the suitability to the trust of investments of the same kind as any particular investment proposed to be made or retained and of that particular investment as an investment of that kind, and
(b) the need for diversification of investments of the trust, in so far as is appropriate to the circumstances of the trust.
Annotations:

Modifications etc. (not altering text)

C5 Ss. 4, 5 applied by 1956 c. lxvii s. 5(1A) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)


5 Advice.

(1) Before exercising any power of investment, whether arising under this Part or otherwise, a trustee must (unless the exception applies) obtain and consider proper advice about the way in which, having regard to the standard investment criteria, the power should be exercised.

(2) When reviewing the investments of the trust, a trustee must (unless the exception applies) obtain and consider proper advice about whether, having regard to the standard investment criteria, the investments should be varied.

(3) The exception is that a trustee need not obtain such advice if he reasonably concludes that in all the circumstances it is unnecessary or inappropriate to do so.

(4) Proper advice is the advice of a person who is reasonably believed by the trustee to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment.

Annotations:

Modifications etc. (not altering text)

C5 Ss. 4, 5 applied by 1956 c. lxvii s. 5(1A) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)


6 Restriction or exclusion of this Part etc.

(1) The general power of investment is—

(a) in addition to powers conferred on trustees otherwise than by this Act, but
(b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.
(2) For the purposes of this Act, an enactment or a provision of subordinate legislation is not to be regarded as being, or as being part of, a trust instrument.

(3) In this Act “subordinate legislation” has the same meaning as in the M1 Interpretation Act 1978.

Annotations:

Marginal Citations

M1 1978 c. 30.


7 Existing trusts.

(1) This Part applies in relation to trusts whether created before or after its commencement.

(2) No provision relating to the powers of a trustee contained in a trust instrument made before 3rd August 1961 is to be treated (for the purposes of section 6(1) (b) ) as restricting or excluding the general power of investment.

(3) A provision contained in a trust instrument made before the commencement of this Part which—

(a) has effect under section 3(2) of the M2 Trustee Investments Act 1961 as a power to invest under that Act, or
(b) confers power to invest under that Act,
is to be treated as conferring the general power of investment on a trustee.
Annotations:

Marginal Citations

M2 1961 c. 62.


Part III
Acquisition of Land



8 Power to acquire freehold and leasehold land.

(1) A trustee may acquire freehold or leasehold land in the United Kingdom—

(a) as an investment,
(b) for occupation by a beneficiary, or
(c) for any other reason.
(2) “Freehold or leasehold land” means—

(a) in relation to England and Wales, a legal estate in land,
(b) in relation to Scotland—
(i) the estate or interest of the proprietor of the dominium utile or, in the case of land not held on feudal tenure, the estate or interest of the owner, or
(ii) a tenancy, and
(c) in relation to Northern Ireland, a legal estate in land, including land held under a fee farm grant.
(3) For the purpose of exercising his functions as a trustee, a trustee who acquires land under this section has all the powers of an absolute owner in relation to the land.

9 Restriction or exclusion of this Part etc.

The powers conferred by this Part are—

(a) in addition to powers conferred on trustees otherwise than by this Part, but
(b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.

10 Existing trusts.

(1) This Part does not apply in relation to—

(a) a trust of property which consists of or includes land which (despite section 2 of the M3 Trusts of Land and Appointment of Trustees Act 1996) is settled land, or
(b) a trust to which the M4 Universities and College Estates Act 1925 applies.
(2) Subject to subsection (1) , this Part applies in relation to trusts whether created before or after its commencement.

Annotations:

Marginal Citations

M3 1996 c. 47.

M4 1925 c. 24.


Part IV
Agents, nominees and custodians



Annotations:

Modifications etc. (not altering text)

C6 Pt. IV applied (with modifications) in part (2.1.2013) by The Charitable Incorporated Organisations (General) Regulations 2012 (S.I. 2012/3012), regs. 1, 33

C7 Pt. IV applied (with modifications) (in part) by 1956 c. lxvii s. 5(1B)-(1D) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)