Trust deed endowing homes already established

Trust deed endowing homes already established

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This precedent is a trust deed endowing homes already established.

This deed is supplemental to the precedent called “Trust deed of homes for poor persons”. This deed provides for both “principal trustees” and “endowment trustees”. The endowment trustees are intended to be some of the principal trustees.

Power of investment

As the trustee legislation now confers upon trustees a general power to invest in any form of investment, it is superfluous to qualify the available investments by the phrase "permitted by law". The issue for settlors (and therefore drafters of trust deeds) is now, rather than broadening the scope of investment powers, to consider whether to limit the scope of this power. If a limit to certain forms of investment or a prohibition on certain forms of investment is deemed appropriate any limit must be expressly and clearly stated in the trust deed.

There is now no need to add words such as "in any investments by law permitted to trustees with power to the principal trustees at any time to vary any investments for others of a like nature" because of the broad power of investment conferred by the trustee legislation, which also empowers trustees to vary investment.

This precedent has been authored for LexisNexis by Phillip Burgess, Associate Professor of Law, University of New South Wales and F Maxwell Bradshaw and updated by GE Dal Pont, Professor, Faculty of Law, University of Tasmania.