The Trustee Investment Act 1961

The Trustee Investments Act 1961 was repealed in 2000 by a new act that covered the legal obligations of trustees with regards to the handling of assets that have been placed under their management.


The Trustee Act 2000 is made up of the following aspects of trust law:


The trustees’ duty of care


The trustee is bound by a duty of care which means that that they are bound by an obligation to perform their duties to the best of their ability and to avoid where possible conflicts of interest that may affect their role as trustee.


The trustees’ legal ability to invest assets


This allows trustees more legal power than the Trustee Investments Act 1961 with investments, stating that they may reasonably invest assets in a way that they deem to be suitable.


The comparison tables on this page are designed so that you can easily and effectively judge different trustee bonds and savings account deals.

Trustee Savings Accounts
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Other key features of the Trustee Investments Act are:


The ability to assign people the roles of nominees and agents


The trustee is able to appoint agents to carry out a range of activities referred to as ‘delegable functions’ as long as they do not involve the distribution or allocation of the trust’s assets in any way.


The trustees’ ability to obtain land


Trustees are allowed to purchase land as means of investment, or for the beneficiaries to live on or for any other reason deemed suitable.


The trustees’ right to have their expenses covered


Trustees are entitled to have their expenses remunerated if this is stated in the trust instrument or if the trustee is acting in a ‘professional capacity’.

If you have been assigned the role of trustee, you may wish to consider your investment options carefully. Our trustee savings and investment comparison tables contain details of several different investment options that may be of interest to you.

Cash ISA Selection
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Kick Out Deposit PlanInvestec Bank plcyesUp to
6 years

3%

per annum

More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 3% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

For alternatives to standard trustee saving accounts, see the table below where we have brought together a selection of structured deposit plans. Structured deposits are term deposits (like a fixed rate bond). The capital is not at risk, but the returns are linked to the performance of an underlying asset, such as the UK stockmarket.

 
These types of plans are worth considering if capital can be committed for the plan term and you are looking for a potential return that is better than a traditional fixed rate bond.

 

Structured Deposits for Trusts - Income
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Structured Deposits for Trusts - Growth
ProviderPlan NameMaximum Potential Return*TermMore Info
Kick Out Deposit Plan

3%

per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 3% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
* Maximum Growth Yields are not guaranteed and subject to certain conditions