# Trustees' duties and powers

> **Key takeaway:** Obey trust + loyalty + TA 2000 s.1 care. Investment powers/criteria TA 2000. No unauthorised conflict/profit. Delegation under statute. Relief: s.61 TA 1925; exemption clauses limited (Armitage). Remedies: see breach-of-trust note.

- **Jurisdiction:** England & Wales
- **Practice area:** Trusts And Chancery
- **Last reviewed:** 2026-08-04
- **Interactive page:** https://kttclegal.info/library/notes/TrustsAndChancery/trustees-duties-and-powers
- **Keywords:** trustees duties, Trustee Act 2000, duty of care, investment powers, fiduciary, Armitage v Nurse, delegation, trustee exemption

## What is this about?

Trustees must administer the trust for the beneficiaries in accordance with the trust instrument and equity's core duties. Modern legislation — especially the Trustee Act 2000 — restates the duty of care and default investment/delegation powers, while fiduciary loyalty rules continue to prohibit unauthorised conflicts and profits.

## What is the core rule?

Trustees must obey the trust terms, act in good faith for the benefit of beneficiaries, balance competing beneficial interests impartially where required, and exercise reasonable care and skill (Trustee Act 2000 s.1 — higher standard for professionals). Default powers include investment (ss.3–5), acquisition of land, and delegation under statutory conditions. Fiduciary duties forbid unauthorised profit and conflict (Boardman lineage). Breach exposes trustees to personal liability and proprietary claims; exclusion clauses and s.61 Trustee Act 1925 relief may assist in limited cases.

## What are the elements or test?

1. Identify trustees, beneficiaries, and governing instrument (plus statute)
2. Duty of care standard (TA 2000 s.1) — professional vs lay
3. Investment: standard investment criteria and advice requirements
4. Any conflict/profit issue requiring consent or court approval?
5. Delegation properly authorised and supervised?
6. Remedies for breach: account, reconstitution, removal, compensation

## Which authorities matter?

- **Trustee Act 2000, ss.1–5, Part IV (delegation)** — Statutory duty of care and default investment/delegation framework.
- **Trustee Act 1925, s.61** — Court may relieve a trustee from personal liability for honest and reasonable breach.
- **Speight v Gaunt (1883) 9 App Cas 1** — Classic common-law root of the prudent trustee standard in administration.
- **Armitage v Nurse [1998] Ch 241** — Outer limits of trustee exemption clauses — cannot exclude liability for actual fraud; debate continues on gross negligence drafting.

## How does this apply in practice?

Charity trustees and pension trustees have additional regulatory duties. Self-dealing and fair-dealing rules remain strict. Always read the trust instrument first — statute often yields to express terms. Pair with the breach-of-trust remedies corpus note for liability consequences.

## What are common pitfalls?

- Lay trustees assuming a lower care standard than TA 2000 requires on the facts
- Investing without regard to standard investment criteria/advice
- Unauthorised trustee remuneration or purchase of trust property
- Over-relying on exemption clauses after Armitage

## When would a practitioner use this?

Trustee decision papers, investment reviews, breach claims, and drafting of trustee powers/exemptions.

## Quick reference

Obey trust + loyalty + TA 2000 s.1 care. Investment powers/criteria TA 2000. No unauthorised conflict/profit. Delegation under statute. Relief: s.61 TA 1925; exemption clauses limited (Armitage). Remedies: see breach-of-trust note.

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*Reference material from [KTTC Legal](https://kttclegal.info/), not legal advice. Work product supports instructing solicitors and barristers under their supervision. England & Wales.*