Looking for a rhyme, looking for a reason: reasonableness and the trustee
In this article for Trusts & Trustees Timothy Sherwin, alongside experts from Mishcon de Reya LLP (Natasha Holme, Associate and Partner Peter Steen, Partner), provides an insight into the standard of reasonableness required of trustees in the execution of their duties.
This article examines the standard of reasonableness required of trustees in the execution of their duties, particularly in light of the case of Perez v Equiom Trust Corporation (UK) Ltd & Anor. It explores the objective test for reasonableness, the heightened expectations placed on professional trustees, and the consequences of unreasonableness, including the impact on the trustee’s indemnity. The discussion delves into the nuances of trustee decision-making, the court’s role in intervening, and the implications of the Perez case on trust law and trustee conduct. The authors provide a critical analysis of the trustee’s obligation to act reasonably and the legal standards applied.
To read the full article, please click here.
