Australian Capital Territory Current Acts

TRUSTEE ACT 1925 - SECT 14B

    (1)     Any rule or principle of law or equity that imposes a duty on a trustee exercising a power of investment continues to apply except to the extent that it is inconsistent with this or any other Act or with the trust instrument.

    (2)     A duty mentioned in subsection (1) includes the following:

        (a)     a duty to exercise the powers of a trustee in the best interests of all present and future beneficiaries of the trust;

        (b)     a duty to invest trust funds in investments that are not speculative or hazardous;

        (c)     a duty to act impartially towards beneficiaries and different classes of beneficiaries;

        (d)     a duty to take advice.

    (3)     If a provision in a trust instrument purports to exempt, indemnify or limit the liability of a trustee in relation to a breach of trust, any rule or principle of law or equity that relates to the provision continues to apply.

    (4)     If a trustee is under a duty to take advice, the reasonable costs of obtaining the advice are payable out of trust funds.