Trustee Duties

What are Trustee Duties in Tort Law?

Quick Definition

Trustee duties are the legal and equitable obligations imposed on trustees when managing property held on trust for beneficiaries. Trustees must act honestly, loyally, and in the best interests of the beneficiaries while following the terms of the trust. Breaching these duties can result in personal liability for any loss caused.

In Context

Trustees are expected to manage trust property with reasonable care and avoid conflicts between personal interests and their fiduciary responsibilities. Core duties include acting impartially between beneficiaries, safeguarding trust assets, keeping accurate accounts, and not profiting from the trust without authorisation. In Speight v Gaunt (1883), the court confirmed that trustees must exercise the care that an ordinary prudent businessperson would apply to their own affairs. Modern duties are also shaped by the Trustee Act 2000, which introduced a statutory duty of care in investment and management decisions. If trustees misuse funds, make unauthorised investments, or fail to act properly, beneficiaries may bring claims for breach of trust and seek compensation or restoration of the trust property. Courts apply these duties strictly because trustees occupy positions of confidence and control over assets belonging beneficially to others.

See Also

• Breach of Trust

• Fiduciary Duty

• Express Trust

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