Trusts in the North West with Parker Kelly
Under the Trustee Act 2000 the trustees have a ‘duty of care’ and they must exercise such care and skill as is reasonable in the circumstances, having regard in particular:
a.) To any special knowledge or experience that they have or hold themselves out as having, and
b.) If they act 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.
Investment
The duty of care for a trustee extends to a general power of investment (Schedule 3 of the Trustee Act 2000), and a trustee may make any kind of investment that they could make if they were absolutely entitled to the assets of the trust.
Before exercising any power of investment, 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.
Proper advice is the advice of a person who is reasonably believed by the trustees in the North West to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment.
* The exception is that a trustee need not obtain such advice if they reasonably conclude that in all the circumstances it is unnecessary or inappropriate to do so.
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