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Trustee Act 1925
1925 CHAPTER 19 15 and 16 Geo 5
An Act to consolidate certain enactments relating to trustees in England and
Wales. [9th April 1925]
Annotations: Modifications etc. (not altering text) C1 The provisions of this Act relating to vesting and certain other orders applied by Settled Land Act 1925 (c. 18), s. 113(9) , Law of Property Act 1925 (c. 20), s. 9(3) and Administration of Estates Act 1925 (c. 23), s. 43(2) C2 Act applied by Land Registration Act 1925 (c. 21), ss. 47(1) , 111(6) and by Local Government Act 1972 (c. 70), s. 146(1)(c) ; amended by Trustee Investments Act 1961 (c. 62), Sch. 4 para. 1(1) C3 Words of enactment omitted under authority of Statute Law Revision Act 1948 (c. 62), s. 3 C4 Act extended by Solicitors Act 1974 (c. 47, SIF 76:1), s. 35, Sch. 1 para. 11 Commencement Information I1 Act wholly in force at 1.1.1926 by s. 71(2) (now repealed) F PART I INVESTMENTS
Annotations: Amendments (Textual) F1 Pt. I (ss. 1-11) repealed (1.2.2001) by 2000 c. 29, s. 40(1)(3), Sch. 2 Pt. II para. 18, Sch. 4 Pt. II (with s. 35, Sch. 3 paras. 2, 3 ); S.I. 2001/49, art. 2
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) PART II GENERAL POWERS OF TRUSTEES AND PERSONAL REPRESENTATIVES General Powers 12 Power of trustees for sale to sell by auction, &c. (1) Where [F8 a trustee has a duty or power to sell property ] , he may sell or concur with any other person in selling all or any part of the property, either subject to prior charges or not, and either together or in lots, by public auction or by private contract, subject to any such conditions respecting title or evidence of title or other matter as the Trustee thinks fit, with power to vary any contract for sale, and to buy in at any auction, or to rescind any contract for sale and to re-sell, without being answerable for any loss. (2) A [F9 duty ] or power to sell or dispose of land includes a [F9 duty ] or power to sell or dispose of part thereof, whether the division is horizontal, vertical, or made in any other way. (3) This section does not enable an express power to sell settled land to be exercised where the power is not vested in the tenant for life or statutory owner. Annotations: Amendments (Textual) F8 Words in s. 12(1) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(2)(a) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F9 Words in s. 12(2) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(2)(b) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 13 Power to sell subject to depreciatory conditions. (1) No sale made by a trustee shall be impeached by any beneficiary upon the ground that any of the conditions subject to which the sale was made have been unnecessarily depreciatory, unless it also appears that the consideration for the sale was thereby rendered inadequate. (2) No sale made by a trustee shall, after the execution of the conveyance, be impeached as against the purchaser upon the ground that any of the conditions subject to which the sale was made may have been unnecessarily depreciatory, unless it appears that the purchaser was acting in collusion with the trustee at the time when the contract for sale was made. (3) No purchaser, upon any sale made by a trustee, shall be at liberty to make any objection against the title upon any of the grounds aforesaid. (4) This section applies to sales made before or after the commencement of this Act. 14 Power of trustees to give receipts. (1) The receipt in writing of a trustee for any money, securities, [F10 investments ] or other personal property or effects payable, transferable, or deliverable to him under any trust or power shall be a sufficient discharge to the person paying, transferring, or delivering
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) Annotations: Amendments (Textual) F12 Words in s. 15 substituted (1.2.2001) by 2000 c. 29, s. 40(1), Sch. 2 Pt. II para. 20 (with s. 35); S.I. 2001/49, art. 2 16 Power to raise money by sale, mortgage, &c. (1) Where trustees are authorised by the instrument, if any, creating the trust or by law to pay or apply capital money subject to the trust for any purpose or in any manner, they shall have and shall be deemed always to have had power to raise the money required by sale, conversion, calling in, or mortgage of all or any part of the trust property for the time being in possession. (2) This section applies notwithstanding anything to the contrary contained in the instrument, if any, creating the trust, but does not apply to trustees of property held for charitable purposes, or to trustees of a settlement for the purposes of the M4 Settled Land Act, 1925, not being also the statutory owners. Annotations: Marginal Citations M4 1925 c. 18. 17 Protection to purchasers and mortgagees dealing with trustees. No purchaser or mortgagee, paying or advancing money on a sale or mortgage purporting to be made under any trust or power vested in trustees, shall be concerned to see that such money is wanted, or that no more than is wanted is raised, or otherwise as to the application thereof. 18 Devolution of powers or trusts. (1) Where a power or trust is given to or imposed on two or more trustees jointly, the same may be exercised or performed by the survivors or survivor of them for the time being. (2) Until the appointment of new trustees, the personal representatives or representative for the time being of a sole trustee, or, where there were two or more trustees of the last surviving or continuing trustee, shall be capable of exercising or performing any power or trust which was given to, or capable of being exercised by, the sole or last surviving or continuing trustee, or other the trustees or trustee for the time being of the trust. (3) This section takes effect subject to the restrictions imposed in regard to receipts by a sole trustee, not being a trust corporation. (4) In this section “personal representative” does not include an executor who has renounced or has not proved.
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- 5 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) 19 F13^ Power to insure. (1) A trustee may— (a) insure any property which is subject to the trust against risks of loss or damage due to any event, and (b) pay the premiums out of the trust funds. (2) In the case of property held on a bare trust, the power to insure is subject to any direction given by the beneficiary or each of the beneficiaries— (a) that any property specified in the direction is not to be insured; (b) that any property specified in the direction is not to be insured except on such conditions as may be so specified. (3) Property is held on a bare trust if it is held on trust for— (a) a beneficiary who is of full age and capacity and absolutely entitled to the property subject to the trust, or (b) beneficiaries each of whom is of full age and capacity and who (taken together) are absolutely entitled to the property subject to the trust. (4) If a direction under subsection (2) of this section is given, the power to insure, so far as it is subject to the direction, ceases to be a delegable function for the purposes of section 11 of the Trustee Act 2000 (power to employ agents). (5) In this section “trust funds” means any income or capital funds of the trust. Annotations: Amendments (Textual) F13 S. 19 substituted (1.2.2001) by 2000 c. 29, s. 34(1)(3) , (with s. 35); S.I. 2001/49, art. 2 20 Application of insurance money where policy kept up under any trust, power or obligation. (1) Money receivable by trustees or any beneficiary under a policy of insurance against the loss or damage of any property subject to a trust or to a settlement within the meaning of the M5 Settled Land Act, 1925, [F14 whether by fire or otherwise ] , shall, where the policy has been kept up under any trust in that behalf or under any power statutory or otherwise, or in performance of any covenant or of any obligation statutory or otherwise, or by a tenant for life impeachable for waste, be capital money for the purposes of the trust or settlement, as the case may be. (2) If any such money is receivable by any person, other than the trustees of the trust or settlement, that person shall use his best endeavours to recover and receive the money, and shall pay the net residue thereof, after discharging any costs of recovering and receiving it, to the trustees of the trust or settlement, or, if there are no trustees capable of giving a discharge therefor, into court. (3) Any such money— (a) if it was receivable in respect of settled land within the meaning of the Settled Land Act, 1925, or any building or works thereon, shall be deemed to be capital money arising under that Act from the settled land, and shall be invested or applied by the trustees, or, if in court, under the direction of the court, accordingly;
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- 7 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) 22 Reversionary interests, valuations and audit. (1) Where trust property includes any share or interest in property not vested in the trustees, or the proceeds of the sale of any such property, or any other thing in action, the trustees on the same falling into possession, or becoming payable or transferable may— (a) agree or ascertain the amount or value thereof or any part thereof in such manner as they may think fit; (b) accept in or towards satisfaction thereof, at the market or current value, or upon any valuation or estimate of value which they may think fit, any authorised investments; (c) allow any deductions for duties, costs, charges and expenses which they may think proper or reasonable; (d) execute any release in respect of the premises so as effectually to discharge all accountable parties from all liability in respect of any matters coming within the scope of such release; without being responsible in any such case for any loss occasioned by any act or thing so done by them [F17 if they have discharged the duty of care set out in section 1(1) of the Trustee Act 2000 ]. (2) The trustees shall not be under any obligation and shall not be chargeable with any breach of trust by reason of any omission— (a) to place any distringas notice or apply for any stop or other like order upon any securities or other property out of or on which such share or interest or other thing in action as aforesaid is derived, payable or charged; or (b) to take any proceedings on account of any act, default, or neglect on the part of the persons in whom such securities or other property or any of them or any part thereof are for the time being, or had at any time been, vested; unless and until required in writing so to do by some person, or the guardian of some person, beneficially interested under the trust, and unless also due provision is made to their satisfaction for payment of the costs of any proceedings required to be taken: Provided that nothing in this subsection shall relieve the trustees of the obligation to get in and obtain payment or transfer of such share or interest or other thing in action on the same falling into possession. (3) Trustees may, for the purpose of giving effect to the trust, or any of the provisions of the instrument, if any, creating the trust or of any statute, from time to time (by duly qualified agents) ascertain and fix the value of any trust property in such manner as they think proper, and any valuation so made [F18... ] shall be binding upon all persons interested under the trust [F19 if the trustees have discharged the duty of care set out in section 1(1) of the Trustee Act 2000 ]. (4) Trustees may, in their absolute discretion, from time to time, but not more than once in every three years unless the nature of the trust or any special dealings with the trust property make a more frequent exercise of the right reasonable, cause the accounts of the trust property to be examined or audited by an independent accountant, and shall, for that purpose, produce such vouchers and give such information to him as he may require; and the costs of such examination or audit, including the fee of the auditor, shall be paid out of the capital or income of the trust property, or partly in one way and partly in the other, as the trustees, in their absolute discretion, think fit, but, in default of any direction by the trustees to the contrary in any special case, costs attributable to capital shall be borne by capital and those attributable to income by income.
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) Annotations: Amendments (Textual) F17 Words in s. 22(1) substituted (1.2.2001) by 2000 c. 29, s. 40(1), Sch. 2 Pt. II para. 22(a) (with s. 35); S.I. 2001/49, art. 2 F18 Words in s. 22(3) omitted (1.2.2001) by virtue of 2000 c. 29, s. 40(1), Sch. 2 Pt. II para. 22(b) (with s. 35 ); S.I. 2001/29, art. 2 F19 Words in s. 22(3) inserted (1.2.2001) by 2000 c. 29, s. 40(1), Sch. 2 Pt. II para. 22(b) (with s. 35); S.I. 2001/29, art. 2 F20 23................................ Annotations: Amendments (Textual) F20 S. 23 repealed (1.2.2001) by 2000 c. 29, s. 40(1)(3), Sch. 2 Pt. II para. 23, Sch. 4 Pt. II (with s. 35, Sch. 3 para. 6); S.I. 2001/49, art. 2 24 Power to concur with others. Where an undivided share in [F21 any ] property, is subject to a trust, or forms part of the estate of a testator or intestate, the trustees or personal representatives may (without prejudice to the [F22 trust ] affecting the entirety of the land and the powers of the [F23 trustees ] in reference thereto) execute or exercise any [F24 duty or ] power vested in them in relation to such share in conjunction with the persons entitled to or having power in that behalf over the other share or shares, and notwithstanding that any one or more of the trustees or personal representatives may be entitled to or interested in any such other share, either in his or their own right or in a fiduciary capacity. Annotations: Amendments (Textual) F21 Words in s. 24 substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(6)(a) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F22 Words in s. 24 substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(6)(b) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F23 Words in s. 24 substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(6)(c) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F24 Words in s. 24 substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(6)(d) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. [F25 25 Delegation of trustee’s functions by power of attorney. (1) Notwithstanding any rule of law or equity to the contrary, a trustee may, by power of attorney, delegate the execution or exercise of all or any of the trusts, powers and discretions vested in him as trustee either alone or jointly with any other person or persons. (2) A delegation under this section—
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) (10) This section applies to a personal representative, tenant for life and statutory owner as it applies to a trustee except that subsection (4) shall apply as if it required the notice there mentioned to be given— (a) in the case of a personal representative, to each of the other personal representatives, if any, except any executor who has renounced probate; (b) in the case of a tenant for life, to the trustees of the settlement and to each person, if any, who together with the person giving the notice constitutes the tenant for life; and (c) in the case of a statutory owner, to each of the persons, if any, who together with the person giving the notice constitute the statutory owner and, in the case of a statutory owner by virtue of section 23(1)(a) of the M8 Settled Land Act 1925, to the trustees of the settlement. ] Annotations: Amendments (Textual) F25 S. 25 substituted (1.3.2000) by 1999 c. 15, s. 5(1)(2) ; S.I. 2000/216, art. 2 Modifications etc. (not altering text) C8 (^) S. 25(6) amended (1.3.2000) by S.I. 2000/215, art. 2, Sch. Pt. I Marginal Citations M7 1925 c.19. M8 1925 c.18. Indemnities 26 Protection against liability in respect of rents and covenants. (1) Where a personal representative or trustee liable as such for— (a) any rent, covenant, or agreement reserved by or contained in any lease; or (b) any rent, covenant or agreement payable under or contained in any grant made in consideration of a rentcharge; or (c) any indemnity given in respect of any rent, covenant or agreement referred to in either of the foregoing paragraphs; satisfies all liabilities under the lease or grant [F26 which may have accrued and been claimed ] up to the date of the conveyance hereinafter mentioned, and, where necessary, sets apart a sufficient fund to answer any future claim that may be made in respect of any fixed and ascertained sum which the lessee or grantee agreed to lay out on the property demised or granted, although the period for laying out the same may not have arrived, then and in any such case the personal representative or trustee may convey the property demised or granted to a purchaser, legatee, devisee, or other person entitled to call for a conveyance thereof and thereafter— (i) he may distribute the residuary real and personal estate of the deceased testator or intestate, or, as the case may be, the trust estate (other than the fund, if any, set apart as aforesaid) to or amongst the persons entitled thereto,without appropriating any part, or any further part, as the case may be, of the estate of the deceased or of the trust estate to meet any future liability under the said lease or grant;
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- 11 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) (ii) notwithstanding such distribution, he shall not be personally liable in respect of any subsequent claim under the said lease or grant. [F27 (1A) Where a personal representative or trustee has as such entered into, or may as such be required to enter into, an authorised guarantee agreement with respect to any lease comprised in the estate of a deceased testator or intestate or a trust estate (and, in a case where he has entered into such an agreement, he has satisfied all liabilities under it which may have accrued and been claimed up to the date of distribution)— (a) he may distribute the residuary real and personal estate of the deceased testator or intestate, or the trust estate, to or amongst the persons entitled thereto— (i) without appropriating any part of the estate of the deceased, or the trust estate, to meet any future liability (or, as the case may be, any liability) under any such agreement, and (ii) notwithstanding any potential liability of his to enter into any such agreement; and (b) notwithstanding such distribution, he shall not be personally liable in respect of any subsequent claim (or, as the case may be, any claim) under any such agreement. In this subsection “authorised guarantee agreement” has the same meaning as in the Landlord and Tenant (Covenants) Act 1995. ] (2) This section operates without prejudice to the right of the lessor or grantor, or the persons deriving title under the lessor or grantor, to follow the assets of the deceased or the trust property into the hands of the persons amongst whom the same may have been respectively distributed, and applies notwithstanding anything to the contrary in the will or other instrument, if any, creating the trust. (3) In this section “lease” includes an underlease and an agreement for a lease or underlease and any instrument giving any such indemnity as aforesaid or varying the liabilities under the lease; “grant” applies to a grant whether the rent is created by limitation, grant, reservation, or otherwise, and includes an agreement for a grant and any instrument giving any such indemnity as aforesaid or varying the liabilities under the grant; “lessee” and “grantee” include persons respectively deriving title under them. Annotations: Amendments (Textual) F26 Words substituted by Law of Property (Amendment) Act 1926 (c. 11), Sch. F27 S. 26(1A) inserted (1.1.1996) by 1995 c. 30, s. 30(1), Sch. 1 para.1 (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art. 27 Protection by means of advertisements. (1) With a view to the conveyance to or distribution among the persons entitled to any real or personal property, the trustees of a settlement [F28 , trustees of land, trustees for sale of personal property ] or personal representatives, may give notice by advertisement in the Gazette, and [F29 in a newspaper circulating in the district in which the land is situated ] and such other like notices, including notices elsewhere than in England and Wales, as would, in any special case, have been directed by a court of competent jurisdiction in an action for administration, of their intention to make such conveyance or distribution as aforesaid, and requiring any person interested to send to the trustees
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- 13 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) Annotations: Amendments (Textual) F31 S. 30 repealed (1.2.2001) by 2000 c. 29, s. 40(1)(3), Sch. 2 Pt. II para. 24, Sch. 4 Pt. II (with s. 35); S.I. 2001/49, art. 2 Maintenance, Advancement and Protective Trusts 31 Power to apply income for maintenance and to accumulate surplus income during a minority. (1) Where any property is held by trustees in trust for any person for any interest whatsoever, whether vested or contingent, then, subject to any prior interests or charges affecting that property— (i) during the infancy of any such person, if his interest so long continues, the trustees may, at their sole discretion, pay to his parent or guardian, if any, or otherwise apply for or towards his maintenance, education, or benefit, the whole or such part, if any, of the income of that property as may, in all the circumstances, be reasonable, whether or not there is— (a) any other fund applicable to the same purpose;or (b) any person bound by law to provide for his maintenance or education; and (ii) if such person on attaining the age of [F32 eighteen years ] has not a vested interest in such income, the trustees shall thenceforth pay the income of that property and of any accretion thereto under subsection (2) of this section to him, until he either attains a vested interest therein or dies, or until failure of his interest: Provided that, in deciding whether the whole or any part of the income of the property is during a minority to be paid or applied for the purposes aforesaid, the trustees shall have regard to the age of the infant and his requirements and generally to the circumstances of the case, and in particular to what other income, if any, is applicable for the same purposes; and where trustees have notice that the income of more than one fund is applicable for those purposes, then, so far as practicable, unless the entire income of the funds is paid or applied as aforesaid or the court otherwise directs, a proportionate part only of the income of each fund shall be so paid or applied. (2) During the infancy of any such person, if his interest so long continues, the trustees shall accumulate all the residue of that income [F33 by investing it, and any profits from so investing it ] from time to time in authorised investments, and shall hold those accumulations as follows:— (i) If any such person— (a) attains the age of [F32 eighteen years ] , or marries under that age, and his interest in such income during his infancy or until his marriage is a vested interest or; (b) on attaining the age of [F32 eighteen years ] or on marriage under that age becomes entitled to the property from which such income arose in fee simple, absolute or determinable, or absolutely, or for an entailed interest;
Part II – General Powers of Trustees and Personal Representatives Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) the trustees shall hold the accumulations in trust for such person absolutely, but without prejudice to any provision with respect thereto contained in any settlement by him made under any statutory powers during his infancy, and so that the receipt of such person after marriage, and though still an infant shall be a good discharge, and (ii) In any other case the trustees shall, notwithstanding that such person had a vested interest in such income, hold the accumulations as an accretion to the capital of the property from which such accumulations arose, and as one fund with such capital for all purposes, and so that, if such property is settled land, such accumulations shall be held upon the same trusts as if the same were capital money arising therefrom; but the trustees may, at any time during the infancy of such person if his interest so long continues, apply those accumulations, or any part thereof, as if they were income arising in the then current year. (3) This section applies in the case of a contingent interest only if the limitation or trust carries the intermediate income of the property, but it applies to a future or contingent legacy by the parent of, or a person standing in loco parentis to, the legatee, if and for such period as, under the general law, the legacy carries interest for the maintenance of the legatee, and in any such case as last aforesaid the rate of interest shall (if the income available is sufficient, and subject to any rules of court to the contrary) be five pounds per centum per annum. (4) This section applies to a vested annuity in like manner as if the annuity were the income of property held by trustees in trust to pay the income thereof to the annuitant for the same period for which the annuity is payable, save that in any case accumulations made during the infancy of the annuitant shall be held in trust for the annuitant or his personal representatives absolutely. (5) This section does not apply where the instrument, if any, under which the interest arises came into operation before the commencement of this Act. Annotations: Amendments (Textual) F32 Word substituted by Family Law Reform Act 1969 (c. 46), s. 1(3), Sch. 1 Pt. I F33 Words in s. 31(2) substituted (1.2.2001) by 2000 c. 29, s. 40(1), Sch. 2 Pt. II para. 25 (with s. 35); S.I. 2001/49, art. 2 32 Power of advancement. (1) Trustees may at any time or times pay or apply any capital money subject to a trust, for the advancement or benefit, in such manner as they may, in their absolute discretion, think fit, of any person entitled to the capital of the trust property or of any share thereof, whether absolutely or contingently on his attaining any specified age or on the occurrence of any other event, or subject to a gift over on his death under any specified age or on the occurrence of any other event, and whether in possession or in remainder or reversion, and such payment or application may be made notwithstanding that the interest of such person is liable to be defeated by the exercise of a power of appointment or revocation, or to be diminished by the increase of the class to which he belongs: Provided that—
Part III – Appointment and Discharge of Trustees Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) he were actually dead, be entitled to the trust property or the income thereof or to the annuity fund, if any, or arrears of the annuity, as the case may be; as the trustees in their absolute discretion, without being liable to account for the exercise of such discretion, think fit. (2) This section does not apply to trusts coming into operation before the commencement of this Act, and has effect subject to any variation of the implied trusts aforesaid contained in the instrument creating the trust. (3) Nothing in this section operates to validate any trust which would, if contained in the instrument creating the trust, be liable to be set aside. [F35 (4) In relation to the dispositions mentioned in section 19(1) of the Family Law Reform Act 1987, this section shall have effect as if any reference (however expressed) to any relationship between two persons were construed in accordance with section 1 of that Act. ] Annotations: Amendments (Textual) F35 S. 33(4) added by Family Law Reform Act 1987 (c. 42, SIF 49:7), s. 33(1)(2), Sch. 2 para. 2, Sch. 3 paras. 1, 6 Modifications etc. (not altering text) C9 (^) S. 33 modified by Family Law Reform Act 1987 (c. 42, SIF 49:7), ss. 19(3)(4), 33(2), Sch. 3 paras. 1, 6 PART III APPOINTMENT AND DISCHARGE OF TRUSTEES 34 Limitation of the number of trustees. (1) Where, at the commencement of this Act, there are more than four trustees of a settlement of land, or more than four trustees holding land on trust for sale, no new trustees shall (except where as a result of the appointment the number is reduced to four or less) be capable of being appointed until the number is reduced to less than four, and thereafter the number shall not be increased beyond four. (2) In the case of settlements and dispositions [F36 creating trusts of land ] made or coming into operation after the commencement of this Act— (a) the number of trustees thereof shall not in any case exceed four, and where more than four persons are named as such trustees, the four first named (who are able and willing to act) shall alone be the trustees, and the other persons named shall not be trustees unless appointed on the occurrence of a vacancy; (b) the number of the trustees shall not be increased beyond four. (3) This section only applies to settlements and dispositions of land, and the restrictions imposed on the number of trustees do not apply— (a) in the case of land vested in trustees for charitable, ecclesiastical, or public purposes; or
Part III – Appointment and Discharge of Trustees Document Generated: 2012-09- 17 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) (b) where the net proceeds of the sale of the land are held for like purposes; or (c) to the trustees of a term of years absolute limited by a settlement on trusts for raising money, or of a like term created under the statutory remedies relating to annual sums charged on land. Annotations: Amendments (Textual) F36 Words in s. 34(2) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(9) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. Modifications etc. (not altering text) C10 (^) S. 34 applied by Land Registration Act 1925 (c. 21), s. 95 35 Appointments of trustees of settlements and [F37and trustees of land]. [F38 (1) Appointments of new trustees of land and of new trustees of any trust of the proceeds of sale of the land shall, subject to any order of the court, be effected by separate instruments, but in such manner as to secure that the same persons become trustees of land and trustees of the trust of the proceeds of sale. ] (2) Where new trustees of a settlement are appointed, a memorandum of the names and addresses of the persons who are for the time being the trustees thereof for the purposes of the M10 Settled Land Act, 1925, shall be endorsed on or annexed to the last or only principal vesting instrument by or on behalf of the trustees of the settlement, and such vesting instrument shall, for that purpose, be produced by the person having the possession thereof to the trustees of the settlement when so required. [F39 (3) Where new trustees of land are appointed, a memorandum of the persons who are for the time being the trustees of the land shall be endorsed on or annexed to the conveyance by which the land was vested in trustees of land; and that conveyance shall be produced to the persons who are for the time being the trustees of the land by the person in possession of it in order for that to be done when the trustees require its production. ] (4) This section applies only to settlements and dispositions of land. Annotations: Amendments (Textual) F37 Words "and trustees of land" substituted for "dispositions on trust for sale of land" (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 10(10)(c) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F38 S. 35(1) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(10)(a) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. F39 S. 35(3) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(10)(b) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. Marginal Citations M10 (^) 1925 c. 18.
Part III – Appointment and Discharge of Trustees Document Generated: 2012-09- 19 Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) to the contrary, nor shall the number of trustees be increased beyond four by virtue of any such appointment. [F40 (6A) A person who is either— (a) both a trustee and attorney for the other trustee (if one other), or for both of the other trustees (if two others), under a registered power; or (b) attorney under a registered power for the trustee (if one) or for both or each of the trustees (if two or three), may, if subsection (6B) of this section is satisfied in relation to him, make an appointment under subsection (6)(b) of this section on behalf of the trustee or trustees. (6B) This subsection is satisfied in relation to an attorney under a registered power for one or more trustees if (as attorney under the power)— (a) he intends to exercise any function of the trustee or trustees by virtue of section 1(1) of the Trustee Delegation Act 1999; or (b) he intends to exercise any function of the trustee or trustees in relation to any land, capital proceeds of a conveyance of land or income from land by virtue of its delegation to him under section 25 of this Act or the instrument (if any) creating the trust. (6C) In subsections (6A) and (6B) of this section “registered power” means a power of attorney created by an instrument which is for the time being registered under section 6 of the M11 Enduring Powers of Attorney Act 1985. (6D) Subsection (6A) of this section— (a) applies only if and so far as a contrary intention is not expressed in the instrument creating the power of attorney (or, where more than one, any of them) or the instrument (if any) creating the trust; and (b) has effect subject to the terms of those instruments. ] (7) Every new trustee appointed under this section as well before as after all the trust property becomes by law, or by assurance, or otherwise, vested in him, shall have the same powers, authorities, and discretions, and may in all respects act as if he had been originally appointed a trustee by the instrument, if any, creating the trust. (8) The provisions of this section relating to a trustee who is dead include the case of a person nominated trustee in a will but dying before the testator, and those relative to a continuing trustee include a refusing or retiring trustee, if willing to act in the execution of the provisions of this section. [F42 (9) Where a trustee is incapable, by reason of mental disorder within the meaning of [F43 the Mental Health Act 1983 ] , of exercising his functions as trustee and is also entitled in possession to some beneficial interest in the trust property, no appointment of a new trustee in his place shall be made by virtue of paragraph ( b ) of subsection (1) of this section unless leave to make the appointment has been given by the authority having jurisdiction under [F43 Part VII of the Mental Health Act 1983 ]. ] Annotations: Amendments (Textual) F40 S. 36(6A)-(6D) inserted (1.3.2000) by 1999 c. 15, s. 8(1)(2) ; S.I. 2000/216, art. 2 F41 Words before s. 36(6)(a) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(11) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2 F42 S. 36(9) substituted by Mental Health Act 1959 (c. 72), Sch. 7 Pt. I
Part III – Appointment and Discharge of Trustees Document Generated: 2012-09- Changes to legislation: There are outstanding changes not yet made by the legislation.gov.uk editorial team to Trustee Act 1925. Any changes that have already been made by the team appear in the content and are referenced with annotations. (See end of Document for details) F43 Words substituted by Mental Health Act 1983 (c. 20, SIF 85), s. 148, Sch. 4 para. 4 ( a ) Modifications etc. (not altering text) C11 S. 36(6) excluded by National Theatre Act 1949 (c. 16), s. 2(2) S. 36(7) extended (1.1.1997) by 1996 c. 47, s. 21(3) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2 C12 S.36(9) restricted by S.I. 1984/2035, art. 15 Marginal Citations M11 1985 c.29. 37 Supplemental provisions as to appointment of trustees. (1) On the appointment of a trustee for the whole or any part of trust property— (a) the number of trustees may, subject to the restrictions imposed by this Act on the number of trustees, be increased; and (b) a separate set of trustees, not exceeding four, may be appointed for any part of the trust property held on trusts distinct from those relating to any other part or parts of the trust property, notwithstanding that no new trustees or trustee are or is to be appointed for other parts of the trust property, and any existing trustee may be appointed or remain one of such separate set of trustees, or, if only one trustee was originally appointed, then, save as hereinafter provided, one separate trustee may be so appointed; and (c) it shall not be obligatory, save as hereinafter provided, to appoint more than one new trustee where only one trustee was originally appointed, or to fill up the original number of trustees where more than two trustees were originally appointed, but, except where only one trustee was originally appointed, and a sole trustee when appointed will be able to give valid receipts for all capital money, a trustee shall not be discharged from his trust unless there will be either a trust corporation or at least two [F44 persons ] to act as trustees to perform the trust; and (d) any assurance or thing requisite for vesting the trust property, or any part thereof, in a sole trustee, or jointly in the persons who are the trustees, shall be executed or done. (2) Nothing in this Act shall authorise the appointment of a sole trustee, not being a trust corporation, where the trustee, when appointed, would not be able to give valid receipts for all capital money arising under the trust. Annotations: Amendments (Textual) F44 Word in s. 37(1)(c) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 3(12) (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 38 Evidence as to a vacancy in a trust. (1) A statement, contained in any instrument coming into operation after the commencement of this Act by which a new trustee is appointed for any purpose connected with land, to the effect that a trustee has remained out of the United Kingdom for more than twelve months or refuses or is unfit to act, or is incapable of acting, or that he is not entitled to a beneficial interest in the trust property in
