1. Investment of trustees
   1. Sources
      1. Trust instrument
         1. Can exclude other duties
      2. Trustee Act 2000
         1. Applies retrospectively
         2. Unless excluded by trust instrument
         3. Interstacy
            1. trusts not created in a document
      3. Duties under general law
   2. Checklist
      1. Is there a trust instrument?
         1. Check terms
      2. Are the investments authorised
         1. S3 TA 2000
            1. Any investment could have been made if absolutely entitled to trust assets
         2. S8 TA 2000
            1. Permits trustees to purchase freehold or leasehold land in UK
            2. For occupation by a beneficiary
         3. Trust instrument
         4. Investment
            1. Investment if it is expected to produce income or capital growth
            2. Harries v Church of England Commissioners
            3. A depreciating asset is not an investment
            4. Cook v Medway Housing Authority
      3. Have the trustees complied with standard investment criteria?
         1. S4 TA 2000
            1. Is the type of investment appropriate?
            2. S4(1)
            3. Is the particular investment suitable
            4. S4(3)(A)
            5. Must consider diversification
            6. S4(3)(B)
         2. S5 TA 2000
            1. Must take proper advice unless consider it unnecessary
            2. Must review investments from time to time
      4. Have the trustees complied with the standard of care
         1. S1 TA 2000
            1. Care and skill reasonable in circumstances
            2. Varies according to size of fund
            3. and skill of trustee
            4. higher for professionals
         2. Learoyd v Whiteley
            1. For investments
            2. Such care as is reasonable when investing for someone they are morally bound to provide for
      5. Have trustees complied with duties laid down by case law
         1. Act in beneficiaries best interests
            1. Cowan v Scargill
            2. Need not take into account ethical considerations
            3. Or if strong interest against something
            4. Harries v Church of England Commissioners
            5. Ethical consideration could be taken into account provided they don't affect the financial returns of the trust
         2. Act impartially
            1. between beneficiaries
            2. between life interests and remaindermen
         3. Duties when have controlling interest in private company shares
   3. If yes to all of these, no breach of trust
2. Summary of duties
   1. Duties upon taking up office
      1. Ensure they are properly appointed
      2. Become familiar with terms of trust
      3. Inquire into past business of trust to discover breaches of trust
   2. Keep property in joint names of all
      1. Or a nominee
   3. Invest funds in authorised investments
      1. Under trust instrument
      2. S3 TA 2000
   4. Duty to provide information
      1. Keep trust accounts
      2. Allow beneficiaries to inspect accounts
      3. Allow beneficiaries to inspect trust documents
   5. Duties regarding powers and discretions
      1. Not under a duty to exercise powers
      2. Must consider whether to exercise
      3. Must exercise unanimously
         1. Unless authorised by trust instrument
   6. Act in best interest of all beneficiaries
   7. Act impartially between beneficiaries
      1. Balance interests of life tenant and remaindermen
   8. Act with reasonable care and skill
      1. Taking into account special skills or knowledge
      2. If professional trustee, taking into account skills or knowledge expected of such a person
   9. Act personally
      1. Active role in administration of trust
      2. Unless delegated under TA 2000
   10. Standard of care
       1. Speight v Gaunt
       2. Trustees must exercise such care as would a reasonable and prudent man of business
       3. Higher standard for professionals