General Powers of Investment

Within the Trustee Act 1961 certain rules put restrictions on trustees, where the trust itself did not clarify any wide investment powers. The Trustee Act 2000 replaced the rules within the Trustee Act 1961.

A new power of General Investment was introduced. Unless the trust has specific restrictions stated in the deed (and it was created after 02/08/1961) trustees can make any investment with the exception of land.

When trustees consider make or reviewing any trust based investments they need to take into account their duty of care in addition to whether the investment is appropriate. If the trustees do not have sufficient knowledge they are expected to appoint an adviser that can provide this service.