Also known as: trustee power · trustees powers · trustees' powers · powers of trustee · trustee authority
Written by attorneys · grounded in primary & secondary sources — see below
Authorities vested in a trustee to manage and administer trust property in accordance with the trust terms and applicable law.
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True North Logistics sold equipment to trustee Theo Thomas for trust assets. The company had no knowledge that Thomas was exceeding his authority under the trust instrument. Because the transaction occurred in good faith and for value, the company faces no liability even though Thomas later misused the equipment.
Settlor Trevor Tate named himself trustee of a trust holding investment assets and retained extensive administrative powers over distributions and investments. The court examined whether those powers gave Tate sufficient dominion and control to include the trust corpus in his taxable estate at death.
A person who in good faith assists a trustee or deals with a trustee for value without knowledge that the trustee is exceeding powers receives the same protection as if the trustee had properly exercised the power.
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A person who in good faith deals with a trustee need not inquire into the extent of the trustee's powers or the propriety of their exercise.
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The primary source of trustee powers is the trust instrument itself, though statutes supply additional default powers when the instrument is silent.
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…the full termination of ownership. The government’s brief defines this as “sufficient dominion and control until his death.” Trustee powers given for the administration or management of the trust must be equitably exercised, however, for the benefit of the trust as a whole. Blodget v. Delaney , 1 Cir., 1953, 201 F.2d 589;…