New South Wales Consolidated Acts

TRUSTEE ACT 1925 - SECT 14B

14B Law and equity preserved

(1) Any rules and principles of law or equity that impose a duty on a trustee exercising a power of investment continue to apply except to the extent that they are inconsistent with this or any other Act or the instrument (if any) creating the trust.

(2) Without limiting the generality of subsection (1), a duty imposed by any rules and principles of law or equity 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 between different classes of beneficiaries,

(d) a duty to take advice.

(3) Any rules and principles of law or equity that relate to a provision in an instrument creating a trust that purports to exempt, limit the liability of, or indemnify a trustee in respect of a breach of trust, continue 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.