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  • Part 8: Part 8: Office of Trustee

    • Article 32 - Accepting or declining trusteeship

      (1) Except as otherwise provided in Article 32(3) a Person designated as Trustee accepts the trusteeship:
      (A) by substantially complying with a method of acceptance provided in the Terms of the Trust; or
      (B) if the Terms of the Trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the Trust Property, exercising powers or performing duties as Trustee, or otherwise indicating acceptance of the trusteeship.
      (2) A Person designated as Trustee who has not yet accepted the trusteeship may decline the trusteeship. A designated Trustee who does not accept the trusteeship within a reasonable amount of time after knowing of the designation is deemed to have rejected the trusteeship.
      (3) A Person designated as a Trustee, without accepting the trusteeship, may without liability for loss:
      (A) act to preserve the Trust Property if, within a reasonable time after acting, it sends a written rejection of the trusteeship to the Settlor or, if the Settlor is dead or lacks capacity, to a named Beneficiary;
      (B) inspect or investigate the Trust Property to determine potential liability under any other law or for any other purpose; or
      (C) apply to the QFC Court for directions or advice.
      (4) A Person who knowingly does any act or thing in relation to the Trust Property consistent with the status of a Trustee of that Property will be deemed to have accepted appointment as a Trustee, but it willnot be remunerated for acting in such capacity as provided in Article 37, unless the Trustee appointed under the Terms of the Trust otherwise agrees.
      Amended (as from 24th December 2017).

    • Article 33 - Vacancy in Trusteeship; appointment of a new Trustee

      (1) A vacancy in a trusteeship occurs if:
      (A) a Person designated as Trustee rejects the trusteeship;
      (B) a Person designated as Trustee cannot be identified or does not exist;
      (C) a Trustee resigns;
      (D) a Trustee is removed;
      (E) a Trustee dies; or
      (F) a guardian is appointed for an individual serving as Trustee.
      (2) Where the Terms of the Trust contain no provision for the appointment of a new Trustee, the Trustee for the time being may appoint a new Trustee or failing that the QFC Court may appoint a new Trustee.
      (3) Subject to the Terms of the Trust, a Trustee appointed under this Article will have the same powers, discretions and duties and may act as if it had been originally appointed a Trustee.
      (4) A Trustee having power to appoint a new Trustee who fails to exercise such power may be removed from office by the QFC Court and the QFC Court may appoint a new Trustee.
      (5) If one or more co-Trustees remain in office, a vacancy in a trusteeship need not be filled.
      (6) A vacancy in trusteeship must be filled if the Trust has no remaining Trustee.
      (7) Where there is no Trustee a Trust will not fail on that account.
      (8) If a new Trustee is appointed, details of such new Trustee must be entered into the Register within five (5) days of such appointment by such new Trustee.
      Amended (as from 24th December 2017).

    • Article 34 - Resignation of Trustee

      (1) Subject to the Terms of the Trust, a Trustee may resign its office:
      (A) by giving at least thirty (30) days' notice in writing to the Beneficiaries, the Settlor, if living, and all its co-Trustees. Such resignation will take effect upon the expiry of such thirty (30) day notice period or such earlier date as may be agreed between the Trustee resigning and the Settlor, if living, and its co-Trustees;
      (B) with the approval of the QFC Court; or
      (C) otherwise in accordance with the Terms of the Trust.
      (2) A resignation given in order to facilitate a breach of trust will have no effect.
      Amended (as from 24th December 2017).

    • Article 35 - Removal of Trustee by QFC Court or under the terms of the Trust

      (1) The Settlor, an Enforcer, a co-Trustee, a Beneficiary, the QFC Authority or the Regulatory Authority may apply to the QFC Court to remove a Trustee, or a Trustee may be removed by the QFC Court on its own initiative.
      (2) The QFC Court may remove a Trustee if:
      (A) the Trustee has committed a breach of trust;
      (B) if lack of cooperation among co-Trustees substantially impairs the administration of the Trust;
      (C) because of unfitness, unwillingness, or persistent failure of the Trustee to administer the Trust and if the QFC Court determines that removal of the Trustee is in the best interests of the Beneficiaries; or
      (D) if there has been a substantial change of circumstances or removal is requested by all of the Beneficiaries and the QFC Court finds that removal of the Trustee is in the best interests of all the Beneficiaries and is not inconsistent with a material purpose of the Trust, and a suitable co-Trustee or successor Trustee is available.
      (3) Pending a final decision on a request to remove a Trustee, or in lieu of or in addition to removing a Trustee, the QFC Court may order an appropriate relief under Article 52.
      Amended (as from 24th December 2017).

    • Article 36 - Position of outgoing Trustee

      (1) A Trustee who resigns or is removed must expeditiously deliver the Trust Property within the Trustee's possession to the co-Trustee, successor Trustee or other Person entitled to it.
      (2) Unless a co-Trustee remains in office or the QFC Court otherwise orders, and until the Trust Property is delivered to a successor Trustee or other Person entitled to it, a Trustee who has resigned or been removed has the duties of a Trustee and the powers necessary to protect the Property.
      (3) A Trustee who resigns or is removed may require to be provided with reasonable security for liabilities whether existing, future, contingent or otherwise before surrendering the Trust Property.
      (4) A Trustee who resigns or is removed and has complied with Article 36(1) will be released from liability to any Beneficiary, Trustee or Person interested under the Trust for any act or omission in relation to the Trust Property or the Trustee's duty as a Trustee except liability:
      (A) arising from any breach of trust to which such Trustee was a party or to which the Trustee was privy; or
      (B) in respect of actions to recover from such Trustee the Trust Property or the proceeds of the Trust Property in the possession of such Trustee.
      Amended (as from 24th December 2017).

    • Article 37 - Remuneration of a Trustee

      (1) Unless authorised by:
      (A) the Terms of the Trust;
      (B) the consent in writing of all of the Beneficiaries; or
      (C) an order of the QFC Court;
      a Trustee will not be entitled to remuneration for its services.
      (2) If the Terms of the Trust specify the Trustee's remuneration, the Trustee is entitled to be remunerated as specified, but the QFC Court may allow more or less remuneration if:
      (A) the duties of the Trustee are substantially different from those contemplated when the Trust was created; or
      (B) the remuneration specified by the Terms of the Trust would be unreasonably low or unreasonably high.
      (3) A Trustee may reimburse itself out of the Trust Property or pay out of the Trust all expenses and liabilities properly incurred in connection with the administration of the Trust.
      Amended (as from 24th December 2017).