ABSTRACT
Trustees are subject to a variety of wide-ranging duties in the administration of trusts. The duties imposed on trustees have been developed by the courts and statutory provisions over several centuries. These duties may be modified, within limits, by the trust instrument. The general policy regarding the duties of trustees may be categorised into two broad principles, namely:
(a) an obligation to act honestly and with reasonable diligence in preserving the trust funds; and
(b) an obligation to act fairly and impartially in their dealings with the beneficiaries. Linked with the duties imposed on trustees is a variety of powers. The sources of these powers are the trust instrument, statutory provisions, the authority of the beneficiaries and directions from the court. The legitimate exercise of these powers varies with the facts of each case.
