9Law and equity preserved

9 Law and equity preserved

[Section 9 Amended by No. 55 of 1965, s. 5 ][Section 9 Substituted by No. 64 of 1997, s. 4, Applied:01 Apr 1998]

(1)  Any rule or principle of law or equity that imposes a duty on a trustee exercising a power of investment including, without limiting the generality of those duties, rules and principles that impose –

(a) a duty to exercise the powers of a trustee in the best interests of all present and future beneficiaries of the trust; or

(b) a duty to act impartially towards beneficiaries and between different classes of beneficiaries; or

(c) a duty to take advice; or

(d) a duty to invest trust funds in investments that are not speculative or hazardous –

continues to apply except so far as it is inconsistent with this or any other Act, or the instrument creating the trust.

(2)  Any rule or principle of law or equity that relates to a provision in an instrument creating a trust that purports to exempt, limit the liability of, or indemnify a trustee in respect of a breach of trust, continues to apply.

(3)  If a trustee has a duty to take advice relating to the administration of a trust, the reasonable costs of obtaining the advice are payable out of trust funds.