I have a straight forward Life interest trust. The Trustees have signed a deed of retirement without naming any replacement Trustees. Legal ownership of the Trust asset has not been transferred to anyone…
Does anyone know what the legal position of the Trusteeship is?
If the retirement is valid, how are new Trustees appointed?
Brewer Harding & Rowe
Section 39 of he Trustees Act 1925 states there should be 2 trustees remaining after a retiring trustee.
Therefore it is my understanding that the retirement of these trustees cannot be upheld and so they must be approached to appoint two replacement trustees before their retirement can be effected.
Unless they’ve retired under an express power to do so, the trustees are still the trustees. See Lewin at 13-019 and a Jersey case called Representation of RBC Trustees (Guernsey), where the trustee did manage to retire under an express power.
The retirement by trustees, leaving no trustee in place, is invalid.
Notwithstanding the deed of retirement the (former?) trustees remain in place.
If they wish to retire and be discharged from the trusts, replacements must be appointed in accordance with the provisions of s.36 Trustee Act 1925.