Legal Questions and Answers by
Jonathan Stones of John Barkers
Question :-
I am the beneficiary of a trust from one of my relations who left me some money which I
cannot touch until I am 25.
I am unhappy about the investments that the trustees have made. Is there anything I can do
about it under the new Trustee Act that recently came into effect?
Answer :-
You do not say why you are unhappy about the investments that the trustees have made.
One would tend to think that you are unhappy with the return that the Trustees are
achieving but then perhaps I am being cynical and your concern is about ethical
investment.
If it is the return that is being achieved, then the Trustee Act 2000
may be good news for you. The Act gives trustees greater freedom to invest, provided that
they maintain a diversified portfolio, and it also abolishes the requirement that that at
least a quarter of the funds are in low risk . . . and therefore likely to be low return .
. . forms of investment.
The new Act also places greater responsibilities on the Trustees and places them under an
obligation to obtain proper advice from suitably qualified people.
If on the other hand you were concerned about ethical investment then I'm afraid it would
be bad news. It is true that the Act requires that investments must be suitable for the
trust but I would take that requirement to be fiscal, rather than being concerned with the
ethics of the organizations the trustees choose to invest with.
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