Trustee duties when delegating TOLATA 1996 s. 9A
Trustees delegating powers under section 9 must exercise a duty of care, review revocable delegations, and intervene or revoke when appropriate.
The duty of care under section 1 of the Trustee Act 2000 applies to trustees of land in deciding whether to delegate any of their functions under section 9. Subsection (3) applies if the trustees of land— delegate any of their functions under section 9, and the delegation is not irrevocable. While the delegation continues, the trustees— must keep the delegation under review, if circumstances make it appropriate to do so, must consider whether there is a need to exercise any power of intervention that they have, and if they consider that there is a need to exercise such a power, must do so. “ Power of intervention ” includes— a power to give directions to the beneficiary; a power to revoke the delegation. The duty of care under section 1 of the 2000 Act applies to trustees in carrying out any duty under subsection (3). A trustee of land is not liable for any act or default of the beneficiary, or beneficiaries, unless the trustee fails to comply with the duty of care in deciding to delegate any of the trustees’ functions under section 9 or in carrying out any duty under subsection (3). Neither this section nor the repeal of section 9(8) by the Trustee Act 2000 affects the operation after the commencement of this section of any delegation effected before that commencement.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
When trustees of land delegate any of their functions to beneficiaries under section 9, they must follow a statutory duty of care under section 1 of the Trustee Act 2000. This standard applies both when making the initial decision to delegate and whenever they monitor or manage that delegation.
If a delegation can be cancelled, trustees must keep it under review when circumstances make it appropriate to do so. They are required to consider whether to intervene—such as by issuing directions or revoking authority—and must take action if needed. Trustees are not automatically liable for acts or defaults of beneficiaries exercising delegated powers unless the trustees breached their duty of care in delegating or supervising under subsection 3.
When it applies
- Trustees who delegated rent collection to a beneficiary living at the property need to evaluate whether to step in after rental payments fall into arrears.
- Trustees considering whether to revoke delegated authority given to a co-owner who is failing to carry out agreed property maintenance.
- Trustees deciding whether to issue formal directions to a beneficiary managing short-term lettings of trust land.
What this section does not say
- The primary power that allows trustees to delegate functions to beneficiaries, which is governed by section 9.
- Exclusions or restrictions on trustee powers imposed by a trust instrument, governed under section 8.
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This page reproduces the text of TOLATA 1996 s. 9A in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.