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Duty of Care - Trustees
Under the Trustee Act 200, a trustee must “….exercise such care and skill as is reasonable in the circumstances…having regard in particular to any special knowledge or experience that the trustee has”. This duty of care had not previously been written in legislation and therefore carries much more weight, placing greater obligation on trustees. Duty of care extends also to any exercise of powers to invest trust property. The Act also specifies that a higher standard of care is expected from a professional trustee than from a private individual.


