A person (the settlor) has transferred the property to three trustees to hold on trust for her grandchildren until they attain the age of 25. Currently, there are three grandchildren at the ages of 20, 17, and 16. The trust deed does not have any specific powers regarding the appointment of trustees. The trustees intend to appoint an additional trustee.
What is the appropriate power for appointing an additional trustee?
A person (the settlor) has transferred the property to three trustees to hold on trust for her grandchildren until they attain the age of 25. Currently, there are three grandchildren at the ages of 20, 17, and 16. The trust deed does not have any specific powers regarding the appointment of trustees. The trustees intend to appoint an additional trustee.
What is the appropriate power for appointing an additional trustee?
The trustees may by writing appoint an additional trustee.
(A) The trustees have the authority to appoint an additional trustee in writing unless the trust instrument explicitly specifies special powers. If the number of trustees is not more than three, then the existing trustees can appoint an additional trustee in writing.
Option (B) is incorrect since there are currently no more than three trustees.
Option (C) is incorrect because the settlor cannot appoint trustees unless it is stated in the trust instrument.
Option (D) is incorrect since the beneficiaries' consent is not required.
Finally, option (E) is incorrect because the appointment does not necessarily have to be made by deed under the statute.