A Matter of Trusts
The power to remove and appoint a trustee is widely accepted to be fiduciary in nature, exercised for the benefit of the beneficiaries of the trust, not the benefit of the appointor.
Role of an appointor
Particularly with modern trust deeds, the appointor usually holds a paramount position under the trust, being that it has the power to remove and appoint the trustee. It is worth noting that this power may also rest with persons of other roles/offices such as “guardian” and “principal” but, for the purposes of this article, we will refer to the position as “appointor”.
Such a position is considered in depth in the context of succession planning for trusts and can be a useful tool in “passing the baton” in respect of the ultimate control of trusts.
Much has been considered in respect of the rights and responsibilities of trustees in their decision-making, but what about those of the appointor, in particular, when acting on the power to remove a trustee?
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