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Discretionary Trust - More than 1 Trustee

Discussion in 'Other/General Law Forum' started by azza, 28 June 2014.

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  1. azza

    azza Member

    28 June 2014
    Likes Received:
    Hoping for some advice.
    wrt the trust conditions below:
    As a trustee, I am looking at purchasing a property on behalf of a trust. There are 3 trustees. Is it legal for me to be the sole signatory to the property contract. ie. can the decision to purchase simply be minuted in the trust records showing agreement by the trustees or must a majority of trustees sign the property contract?

    Overriding general powers
    26. The trustee has all the powers in relation to the assets of the trust that it is possible to give a trustee, including all the powers that an individual would have as the legal and beneficial owner of the assets.

    More than one trustee

    74. If there is more than one trustee at any time, the powers and discretions exercisable by the trustee are only exercisable unanimously or by a majority of the trustees.
  2. John R

    John R Well-Known Member

    14 April 2014
    Likes Received:
    Hi azza,
    If clause 74 is an extract of the Trust Deed, then it appears that agreement of at least 2 of the 3 trustees is required to purchase the property. Given the complexity of trusts and the significance of a property purchase, you should consider obtaining specific legal advice as to how this agreement can be validly demonstrated.

    Hope this helps. Please keep us updated with your progress.

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