This page mainly applies to England and Wales. Scotland and Northern Ireland may have different rules — check the jurisdiction before relying on this information.
Last amended by Companies Act 2006 in 2006. Consequential amendments to trustee investment powers relating to company securities.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Trustee Act 2000 modernised the powers and duties of trustees in England & Wales. It replaced the narrow 'prudent man of business' standard with a statutory duty of care, introduced a general power of investment, widened powers to acquire land, and created a framework for delegating trustee functions. It applies as a default to most express trusts unless excluded by the trust instrument.
Key Points
- Statutory duty of care — trustee must exercise such care and skill as is reasonable in the circumstances (s.1, Schedule 1)
- General power of investment — trustees may make any kind of investment as if absolutely entitled to the trust assets (s.3)
- Standard investment criteria — suitability and diversification (s.4)
- Duty to obtain and consider proper advice on investments (s.5)
- Power to acquire freehold or leasehold land in the UK (s.8)
- Power to appoint agents, nominees, and custodians (Part IV)
- Remuneration of professional trustees (s.29)
- Trust instrument may restrict or exclude the statutory provisions (s.9)
- Statutory duty of care: skill and care reasonable in the circumstances (s.1, Sch.1)
- General power of investment — as if absolutely entitled to trust assets (s.3)
- Duty to have regard to standard investment criteria (s.4)
- Power to acquire freehold or leasehold land (s.8)
- Power to delegate to agents, nominees, and custodians (Part IV)
- Power to insure trust property (s.34)
Parts & Sections
Amendments History
2006 — Companies Act 2006
Consequential amendments to trustee investment powers relating to company securities.