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Trustee Act (Northern Ireland) 2001

3 versions · 2001-07-20

2013-06-24

Trustee Act (Northern Ireland) 2001

View changes Text at this date

2010-04-01

Trustee Act (Northern Ireland) 2001

View changes Text at this date

Changes on 2010-04-01

@@ -88,7 +88,7 @@

- (3) A provision contained in a trust instrument made before the commencement of this Part which—

- (a) has effect under section 3(2) of the Trustee Investments Act [1961 (c. 62)](https://www.legislation.gov.uk/ukpga/1961/62) as a power to invest under that Act, or

- (a) has effect under section 3(2) of the Trustee Investments Act 1961 (c.62) as a power to invest under that Act, or

- (b) confers power to invest under that Act,

@@ -96,7 +96,7 @@

- (4) This subsection applies to a person who is not a trustee but has a statutory power of making investments which is or includes power (however expressed)—

- (a) to make the same investments as are authorised by the Trustee Investments Act [1961 (c. 62)](https://www.legislation.gov.uk/ukpga/1961/62); or

- (a) to make the same investments as are authorised by the Trustee Investments Act 1961 (c. 62); or

- (b) to invest in any manner in which a trustee is for the time being authorised by law to invest trust funds.

@@ -166,11 +166,11 @@

- (b) any function relating to the investment of assets subject to the trust (including, in the case of land held as an investment, managing the land and creating or disposing of an interest in the land);

- (c) any function relating to the raising of funds for the trust otherwise than by means of profits of a trade which is an integral part of carrying out the trust’s charitable purpose;

- (c) any function relating to the raising of funds for the trust otherwise than by means of profits of a trade which is an integral part of carrying out the trust's charitable purpose;

- (d) any other function prescribed by an order made by the Department for Social Development subject to negative resolution.

- (4) For the purposes of subsection (3)(c) a trade is an integral part of carrying out a trust’s charitable purpose if, whether carried on in the United Kingdom or elsewhere, the profits are applied solely to the purposes of the trust and either—

- (4) For the purposes of subsection (3)(c) a trade is an integral part of carrying out a trust's charitable purpose if, whether carried on in the United Kingdom or elsewhere, the profits are applied solely to the purposes of the trust and either—

- (a) the trade is exercised in the course of the actual carrying out of a primary purpose of the trust, or

@@ -222,7 +222,7 @@

- (2) The trustees may not authorise a person to exercise any of their asset management functions as their agent unless—

- (a) they have prepared a statement that gives guidance as to how the functions should be exercised (“a policy statement”), and

- (a) they have prepared a statement that gives guidance as to how the functions should be exercised ( “a policy statement”), and

- (b) the agreement under which the agent is to act includes a term to the effect that he will secure compliance with—

@@ -288,9 +288,9 @@

- (b) the person is a body corporate which is controlled by the trustees;

- (c) the person is a body corporate recognised under Article 26A of the [Solicitors (Northern Ireland) Order 1976 (NI 12)](https://www.legislation.gov.uk/nisi/1976/582).

- (3) The question whether a body corporate is controlled by trustees is to be determined in accordance with section 840 of the Income and Corporation Taxes Act [1988 (c. 1)](https://www.legislation.gov.uk/ukpga/1988/1).

- (c) the person is a body corporate recognised under Article 26A of the Solicitors (Northern Ireland) Order 1976 (NI 12).

- (3) The question whether a body corporate is controlled by trustees is to be determined in accordance with section 1124 of the Corporation Tax Act 2010.

- (4) The trustees of a charitable trust must act in accordance with any guidance given by the Department for Social Development concerning the selection of a person for appointment as a nominee or custodian under section 16, 17 or 18.

@@ -452,9 +452,9 @@

- (4) Any payments to which the trustee is entitled in respect of services are to be treated as remuneration for services (and not as a gift) for the purposes of—

- (a) Article 8 of the [Wills and Administration Proceedings (Northern Ireland) Order 1994 (NI 13)](https://www.legislation.gov.uk/nisi/1994/1899) (gifts to an attesting witness to be void), and

- (b) section 30(3) of the Administration of Estates Act (Northern Ireland) [1955 (c. 24)](https://www.legislation.gov.uk/apni/1955/24) (order in which estate to be paid out).

- (a) Article 8 of the Wills and Administration Proceedings (Northern Ireland) Order 1994 (NI 13) (gifts to an attesting witness to be void), and

- (b) section 30(3) of the Administration of Estates Act (Northern Ireland) 1955 (c.24) (order in which estate to be paid out).

- (5) For the purposes of this Part, a trustee acts in a professional capacity if he acts in the course of a profession or business which consists of or includes the provision of services in connection with—

@@ -490,7 +490,7 @@

is entitled to receive reasonable remuneration out of the trust funds for any services that he provides to or on behalf of the trust if each other trustee has agreed in writing that he may be remunerated for the services.

- (3) “Reasonable remuneration” means, in relation to the provision of services by a trustee, such remuneration as is reasonable in the circumstances for the provision of those services to or on behalf of that trust by that trustee and for the purposes of subsection (1) includes, in relation to the provision of services by a trustee who is an authorised institution under the Banking Act [1987 (c. 22)](https://www.legislation.gov.uk/ukpga/1987/22) and provides the services in that capacity, the institution’s reasonable charges for the provision of such services.

- (3) “Reasonable remuneration” means, in relation to the provision of services by a trustee, such remuneration as is reasonable in the circumstances for the provision of those services to or on behalf of that trust by that trustee and for the purposes of subsection (1) includes, in relation to the provision of services by a trustee who is an authorised institution under the Banking Act 1987 (c.22) and provides the services in that capacity, the institution's reasonable charges for the provision of such services.

- (4) A trustee is entitled to remuneration under this section even if the services in question are capable of being provided by a lay trustee.

@@ -570,9 +570,9 @@

- (2) Nothing in section 28 or 29 is to be treated as affecting the operation of—

- (a) Article 8 of the [Wills and Administration Proceedings (Northern Ireland) Order 1994 (NI 13)](https://www.legislation.gov.uk/nisi/1994/1899), or

- (b) section 30(3) of the Administration of Estates Act (Northern Ireland)[1955 (c. 24)](https://www.legislation.gov.uk/ukpga/1955/24),

- (a) Article 8 of the Wills and Administration Proceedings (Northern Ireland) Order 1994 (NI 13), or

- (b) section 30(3) of the Administration of Estates Act (Northern Ireland)1955 (c.24),

in relation to any death occurring before the commencement of section 28 or (as the case may be) section 29.

@@ -616,7 +616,7 @@

- (a) a trustee is incapable by reason of mental disorder (within the meaning of the Mental Health Order) of exercising his functions as trustee;

- (b) there is no person who is both entitled and willing and able to appoint a trustee in place of him under section 35(1) of the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23); and

- (b) there is no person who is both entitled and willing and able to appoint a trustee in place of him under section 35(1) of the Trustee Act (Northern Ireland) 1958 (c.23); and

- (c) the beneficiaries under the trust are of full age and capacity and (taken together) are absolutely entitled to the property subject to the trust.

@@ -624,13 +624,13 @@

- (a) a controller appointed for the trustee under Article 101 of the Mental Health Order;

- (b) an attorney acting for the trustee under the authority of a power of attorney created by an instrument which is registered under Article 8 of the [Enduring Powers of Attorney (Northern Ireland) Order 1987 (NI 16)](https://www.legislation.gov.uk/nisi/1987/1627); or

- (b) an attorney acting for the trustee under the authority of a power of attorney created by an instrument which is registered under Article 8 of the Enduring Powers of Attorney (Northern Ireland) Order 1987 (NI 16); or

- (c) a person authorised for the purpose by the High Court under Part VIII of the Mental Health Order,

a written direction to appoint by writing the person or persons specified in the direction to be a trustee or trustees in place of the incapable trustee.

- (3) In this section “the Mental Health Order” means the [Mental Health (Northern Ireland) Order 1986 (NI 4)](https://www.legislation.gov.uk/nisi/1986/595).

- (3) In this section “the Mental Health Order” means the Mental Health (Northern Ireland) Order 1986 (NI 4).

#### Provisions supplementary to sections 34 and 35

@@ -646,7 +646,7 @@

- (2) Where more than one direction is given each must specify for appointment or retirement the same person or persons.

- (3) Subsection (7) of section 35 of the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23) (powers of trustees appointed under that section) applies to a trustee appointed under section 34 or 35 as if he were appointed under that section.

- (3) Subsection (7) of section 35 of the Trustee Act (Northern Ireland) 1958 (c.23) (powers of trustees appointed under that section) applies to a trustee appointed under section 34 or 35 as if he were appointed under that section.

- (4) Sections 34 and 35 do not apply in relation to a trust created by a disposition in so far as provision that they do not apply is made by the disposition.

@@ -672,13 +672,13 @@

##### 37

- (1) For section 19 of the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23) (power to insure) substitute—

- (1) For section 19 of the Trustee Act (Northern Ireland) 1958 (c.23) (power to insure) substitute—

> (19) A trustee may—

> (a) insure any property which is subject to the trust against risks of loss or damage due to any event, and

> (b) pay the premiums out of any income or capital funds of the trust

- (2) In section 20(1) of the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23) (application of insurance money) omit “whether by fire or otherwise”.

- (2) In section 20(1) of the Trustee Act (Northern Ireland) 1958 (c.23) (application of insurance money) omit “whether by fire or otherwise”.

- (3) The amendments made by this section apply in relation to trusts whether created before or after its commencement.

@@ -700,9 +700,9 @@

- (3) Remuneration to which a personal representative is entitled under section 28 or 29 is to be treated as an administration expense for the purposes of—

- (a) section 30(3) of the [Administration of Estates Act (Northern Ireland) 1955 ( c.24)](https://www.legislation.gov.uk/ukpga/1955/24) (order in which estate to be paid out), and

- (b) any provision giving reasonable administration expenses priority over the preferential debts listed in Schedule 4 to the [Insolvency (Northern Ireland) Order 1989 (NI 19)](https://www.legislation.gov.uk/nisi/1989/2405).

- (a) section 30(3) of the Administration of Estates Act (Northern Ireland) 1955 ( c.24) (order in which estate to be paid out), and

- (b) any provision giving reasonable administration expenses priority over the preferential debts listed in Schedule 4 to the Insolvency (Northern Ireland) Order 1989 (NI 19).

- (4) Nothing in subsection (3) is to be treated as affecting the operation of the provisions mentioned in paragraphs (a) and (b) of that subsection in relation to any death occurring before the commencement of this section.

@@ -710,7 +710,7 @@

##### 39

- (1) In this section “pension scheme” means an occupational pension scheme (within the meaning of the Pension Schemes (Northern Ireland) Act [1993 (c. 49)](https://www.legislation.gov.uk/ukpga/1993/49)) established under a trust and subject to the law of Northern Ireland.

- (1) In this section “pension scheme” means an occupational pension scheme (within the meaning of the Pension Schemes (Northern Ireland) Act 1993 (c.49)) established under a trust and subject to the law of Northern Ireland.

- (2) Part I does not apply in so far as it imposes a duty of care in relation to—

@@ -738,9 +738,9 @@

- (7) For the purposes of subsection (6)—

- (a) “employer”, in relation to a scheme, has the same meaning as in Part II of the [Pensions (Northern Ireland) Order 1995 (NI 22)](https://www.legislation.gov.uk/nisi/1995/3213);

- (b) Articles 4 and 7 of the [Insolvency (Northern Ireland) Order 1989 (NI 19)](https://www.legislation.gov.uk/nisi/1989/2405) apply for the purpose of determining whether a person is an associate of or connected with an employer.

- (a) “employer”, in relation to a scheme, has the same meaning as in Part II of the Pensions (Northern Ireland) Order 1995 (NI 22);

- (b) Articles 4 and 7 of the Insolvency (Northern Ireland) Order 1989 (NI 19) apply for the purpose of determining whether a person is an associate of or connected with an employer.

- (8) Sections 16 to 20 (powers to appoint nominees and custodians) do not apply to the trustees of a pension scheme.

@@ -750,13 +750,13 @@

- (1) Parts II to IV do not apply to trustees of authorised unit trusts.

- (2) “Authorised unit trust” means a unit trust scheme in the case of which an order under section 78 of the Financial Services Act [1986 (c. 60)](https://www.legislation.gov.uk/ukpga/1986/60) or section 243 of the Financial Services and Markets Act [2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) is in force.

- (2) “Authorised unit trust” means a unit trust scheme in the case of which an order under section 78 of the Financial Services Act 1986 (c.60) or section 243 of the Financial Services and Markets Act 2000 (c.8) is in force.

#### Common investment schemes for charities

##### 41

Parts II to IV do not apply to trustees managing a fund under a common investment scheme made under section 25 of the Charities Act (Northern Ireland) [1964 (c. 33)](https://www.legislation.gov.uk/apni/1964/33), other than such a fund the trusts of which provide that property is not to be transferred to the fund except by or on behalf of a charity the trustees of which are the trustees appointed to manage the fund.

Parts II to IV do not apply to trustees managing a fund under a common investment scheme made under section 25 of the Charities Act (Northern Ireland) 1964 (c.33), other than such a fund the trusts of which provide that property is not to be transferred to the fund except by or on behalf of a charity the trustees of which are the trustees appointed to manage the fund.

#### The Crown

@@ -776,7 +776,7 @@

- “asset management function” has the meaning given in section 15(5);

- “charitable trust” means a trust under which property is held for charitable purposes and “charitable purposes” has the same meaning as in the Charities Act (Northern Ireland) [1964 (c. 33)](https://www.legislation.gov.uk/apni/1964/33);

- “charitable trust” means a trust under which property is held for charitable purposes and “charitable purposes” has the same meaning as in the Charities Act (Northern Ireland) 1964 (c.33);

- “custodian” has the meaning given by section 17(2);

@@ -784,13 +784,13 @@

- “the general power of investment” has the meaning given by section 3(2);

- “personal representative” has the same meaning as in the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23);

- “settled land” has the same meaning as in the Settled Land Act [1882 (c. 38)](https://www.legislation.gov.uk/ukpga/1882/38);

- “statutory provision” has the same meaning as in section 1(f) of the Interpretation Act (Northern Ireland) [1954 (c. 33)](https://www.legislation.gov.uk/apni/1954/33);

- “trust corporation” has the same meaning as in the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23);

- “personal representative” has the same meaning as in the Trustee Act (Northern Ireland) 1958 (c.23);

- “settled land” has the same meaning as in the Settled Land Act 1882 (c.38);

- “statutory provision” has the same meaning as in section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c.33);

- “trust corporation” has the same meaning as in the Trustee Act (Northern Ireland) 1958 (c.23);

- “trust funds” means income or capital funds of the trust.

@@ -882,7 +882,7 @@

The duty of care applies to a trustee—

- (a) when exercising the power under section 15 of the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23) to do any of the things referred to in that section;

- (a) when exercising the power under section 15 of the Trustee Act (Northern Ireland) 1958 (c.23) to do any of the things referred to in that section;

- (b) when exercising any corresponding power, however conferred.

@@ -1186,7 +1186,7 @@

##### 9

In this Schedule “the 1958 Act” means the Trustee Act (Northern Ireland) [1958 (c. 23)](https://www.legislation.gov.uk/apni/1958/23).

In this Schedule “the 1958 Act” means the Trustee Act (Northern Ireland) 1958 (c. 23).

## SCHEDULE 4

2001-07-20

Trustee Act (Northern Ireland) 2001

original version Text at this date