• Duties of Trustees Over Their Investments

    Pages: 7

    This 7 page paper discuses the statement “On the one hand the law gives the trustee the same powers of investment as those of an absolute owner; on the other hand he can not exercise such powers as can an absolute owner”. This is considered by looking at the powers and duties of a trustee paying particular attention to the constraints on the exercise of a trustee's power of investment. The paper is writer with reference to English law. The bibliography cites 7 sources.

    File: TS14_TEduttrust.rtf

    Send Me This Paper »

     

    Sample Text:
    Duties of Trustees Over Their Investments United Kingdom, . To Use This Report Correctly, Please  l Trustees are placed in an interesting position, when it comes to the management of the investment that they look after they are granted the same powers as  those of an absolute owner, choosing where to place the investment and how. However at the same time as this they do not have the same ability to exercise the  powers of an absolute owner; they cannot use the funds and dispose of them for their own benefit as they are entrusted with the management of the funds for  the benefit of others. If we are going to consider trusts, then the first step we need to take is to define them and as such the duties  of the trustee. A trust is "1. A confidence reposed by one person in conveying or bequeathing property to another that the latter will apply to a purpose or purposes  desired by the former. These purposes are generally indicated in the instrument, whether deed or will, by which the disposition is made. 2. Hence it signifies the beneficial interest created  by such a transaction. In this sense it may be defined as a beneficial interest in, or ownership of, real or personal property, intended with the legal or possesory ownership  of it" (Ivamy, 2007). Trusts are generally used when there is the desires for someone, either an individual, or an organisations, to  use property, and for one reason, or another, are not able to hold the legal title. This may be due to the fact that the use is intended to pass 

    Back to Results