• Powers and Duties of Trustees

The widest power conferred on trustees by our Act is found in section 24(1) which provides that "a trustee shall, in relation to the trust property, have all the powers of a natural person having the absolute title to such property." Obviously, the trustee shall deal with that property for the benefit of other persons. 

A trustee may not delegate his powers unless permitted to do so by the Act or by the terms of the trust or by the Court.  Nonetheless, provided the terms of the trust do not specifically provide otherwise, trustees may delegate the management of trust property and to employ, for such purpose, investment managers.  Trustees may also employ professional persons such as accountants, advocates, bankers and brokers to act in relation to any of the affairs of the trust. 

A trustee who delegates his power shall not be liable for any loss arising to the trust in consequence of such delegation.  He would, however, be liable if he executes his power of delegation negligently or in bad faith. 

In a nutshell, the Act imposes on trustees the duty to manage and, so far as reasonable, to preserve and enhance the value of the trust property and to act with the prudence, diligence and attention of a bonus paterfamilias, wholly and impartially in the interests of the beneficiaries. 
It is evident that the test taken from our Civil Code relating to the degree of care expected of the trustees is more demanding than the test adopted by the English Courts, viz.  "the ordinary man of prudence" or "the ordinary prudent man of business." 

Besides, trustees have a duty: 

(i) to ensure that the trust property is vested in them or is under their control; 

(ii) to hold the trust property distinct and separate from their own property or from any other property held by them under any other trust or title; and 

(iii) to keep accurate accounts and records of their trusteeship and to provide, upon request, any beneficiary with a copy of the accounts. 

Finally, trustees should not profit either directly or indirectly from their trusteeship or cause or permit any other person to do so unless expressly provided by the terms of the trust or else they are duly authorised to do so by the Court.