Practical Considerations For Outgoing Trustees

Whether at the request of beneficiaries, or through their own choice, trustees will often know when the time is right to pass the baton. This guide highlights a few practical considerations to which a trustee ought to have regard upon their retirement as trustee.

The rules on retirement

The trust instrument will always be the starting point for trustee decision-making. Trustees planning an exit should carefully review the terms of the trust instrument for any express powers concerning changes of trustees. A failure to comply with terms of the trust instrument relating to such powers might invalidate a deed or instrument of retirement, appointment and indemnity (commonly known as a DORA or IORA).