requires that and principles of law or equity that impose Trustee Act 1958 (Vic) s 7 – duties upon trustees exercising the power of investment continue to apply, except to the extent that they are inconsistent with the Act or are overridden by the trust instrument. Best Interests of present and future beneficiaries moral duty’ – ‘no The term interests’ in the context of investment means best financial interests’ of ‘best ‘the the beneficiaries per [1950] 2 All ER 93 Buttle v Saunders Trustees were selling a freehold to Mrs Simpson, and then another Buttle v Saunders – bidder made a higher bid. The trustees felt obliged to contract with Mrs Simpson. Court stated that trustees overriding duty to obtain the best price they ‘the and they owed no moral duty. could for their beneficiaries’ [1984] 2 All ER 750 Cowan v Scargill paramount duty of trustees under a trust to provide financial benefits was ‘The to provide the greatest financial benefits for the present and future beneficiaries’ The Court was concerned with a trust for individual beneficiaries. Charitable trusts different from trusts for persons in that they are for particular charitable No Personal views or Preferences – Trustees must not be swayed by their personal views and preferences if investments contrary to their own views return greater rewards for the trust. Duty to act impartially towards beneficiaries and between different classes of beneficiaries Where there is more than one beneficiary of a trust, the trust cannot show partiality to one of them at the expense of another. [1948] VLR 401 v Carlson Testators daughter was married to the trustee and was permitted by the trustees to purchase a house from the estate at a bargain price. Other beneficiaries had offered the same price but were rejected. Court ruled that the purchase was void and that trustee is under a duty to act fairly in respect of these ‘the different classes and cannot prefer one group over another’ Duty to Invest Funds
Trustee Act 1958 (Vic) s 7 – requires that and principles of law or equity that impose duties upon trustees exercising the power of investment continue to apply, except to the extent that they are inconsistent with the Act or are overridden by the trust instrument. Best Interests of present and future beneficiaries – ‘no moral duty’ The term ‘best interests’ in the context of investment means ‘the best financial interests’ of the beneficiaries per Buttle v Saunders [1950] 2 All ER 93 Buttle v Saunders – Trustees were selling a freehold to Mrs Simpson, and then another bidder made a higher bid. The trustees felt obliged to contract with Mrs Simpson. Court stated that ‘the trustees overriding duty to obtain the best price they could for their beneficiaries’ and they owed no moral duty. Cowan v Scargill [1984] 2 All ER 750 ‘The paramount duty of trustees under a trust to provide financial benefits was to provide the greatest financial benefits for the present and future beneficiaries’ The Court was concerned with a trust for individual beneficiaries. Charitable trusts different from trusts for persons in that they are for particular charitable No Personal views or Preferences – Trustees must not be swayed by their personal views and preferences if investments contrary to their own views return greater rewards for the trust. Duty to act impartially towards beneficiaries and between different classes of beneficiaries Where there is more than one beneficiary of a trust, the trust cannot show partiality to one of them at the expense of another. v Carlson [1948] VLR 401 Testators daughter was married to the trustee and was permitted by the trustees to purchase a house from the estate at a bargain price. Other beneficiaries had offered the same price but were rejected. Court ruled that the purchase was void and that ‘the trustee is under a duty to act fairly in respect of these different classes and cannot prefer one group over another’ Duty to Invest Funds
Trusts_Summary.docx