The trustees were charged with making unauthorized or improper investments, and the claim was that the trusts of the will relating to the sums invested should be carried into execution under the direction of the court and that the trustees might be ordered to invest the sums or so much thereof as were not properly invested upon the securities mentioned in the will. The imprudent investment of one sum of andpound;3,000 was established, but as to another of andpound;2,000 no want of prudence or of diligence was established. There was no order as to costs so far as the andpound;3,000 was concerned, but as to the andpound;2,000 the trustees were given their costs out of the trust estate or out of the andpound;3,000, for which they were liable to account. The standard required of a trustee is to take reasonable care, being the care that an ordinary prudent person of business would apply to his own affairs, keeping in mind that moral obligations to others have been undertaken
(1886) 33 ChD 347
Appeal from – Learoyd v Whiteley HL 1-Aug-1887
In managing a trust business the trustee should exercise the same care as an ordinary, prudent business person would exercise in conducting that business as if it were his or her own . .
Cited – Pullan v Wilson and Others ChD 28-Jan-2014
The court was asked difficult questions concerning the reasonableness of the remuneration charged to a number of family trusts by a professional trustee.
Held: Excessive claims for fees had been made, and the trustees were ordered to repay . .
Lists of cited by and citing cases may be incomplete.
Updated: 04 May 2022; Ref: scu.534108