Trustees’ duties: exemptions and exonerations

Abstract

Abstract As part of the bargain for undertaking a trusteeship, a trustee can exempt itself not only from liability for a breach of trust, it can altogether oust particular trusteeship duties, so long as it leaves intact the irreducible core obligations of a trust. Where a trustee is to hold underlying controlled companies, the trustee’s duties of supervision and inquiry can be specifically ousted so long as the trustee has no actual or blind-eye knowledge of dishonest conduct in the affairs of such companies. Low insurance premiums lead to low trustees’ fees.