5.1The duties that a trustee owes to beneficiaries are a key facet of the trust relationship. Currently there is little reference to trustees’ duties in trusts legislation. It is difficult to understand a trust without understanding trustees’ duties. Our intention with these recommendations is to improve the accessibility and clarity of the law. We propose that the new Trusts Act summarise and restate trust law in this area with specific details left to be governed by rules of equity. This chapter discusses our recommendations relating to:
- the mandatory and default duties of trustees;
- exemption of trustee liability and indemnity clauses;
- the retention of trust information by trustees; and
- the provision of trust information to beneficiaries.
5.2 The arguments regarding the reform options on these topics are discussed more fully in the Preferred Approach Paper and Fourth Issues Paper.