ABSTRACT

The settlor has the freedom to select eligible persons to be the Frist trustees. He may appoint the trustees inter vivos or by his will. In the case of an inter vivos trust the settlor is required to transfer the property to the trustees for failure to achieve this result will make the trust imperfect. The settlor or testator who creates a trust usually appoints the Frist trustees. If, in purported creation of a trust inter vivos, the settlor fails to nominate trustees, the intended trust will be imperfect. The trust instrument may confer the authority to appoint a trustee. This is exceptional because the statutory power to appoint is generally regarded as adequate. The express authority may be ‘general’ or ‘special’. A general authority is one which confers an authority to appoint trustees in any circumstances. The statutory power to appoint trustees is contained in s 36 of the Trustee Act 1925.