CLIENT TALK
February, 2003
CHANGES TO THE TRUSTEE ACT
Changes to the Trustee Act that allow trustees to invest trust property
in any form of property or security are coming into effect as of February
28, 2003 by regulation (B.C. Reg. 34/2003).
The Trustee Investment Statutes Amendment Act 2002, S.B.C. 2002, c.
33 (formerly Bill 30) repeals and replaces ss. 15 through 18 and s.
20 of the Trustee Act, removing the restriction that allowed trustees
to invest trust property only in the conservative investment vehicles
listed in the Act. Trustees will still be required to exercise the care,
skill, diligence and judgement of a prudent investor.
The amended Act also limits a trustee's liability for breach of trust
to the net loss to a portfolio the trustee administers, unless the trustee
acted dishonestly. The old rule—that losses can't be set off by
gains—will still apply if dishonesty is involved.
The changes also allow trustees to seek investment advice and delegate
authority in accordance with ordinary business practice, and to pool
trust assets for investment purposes. Finally, a new s. 17.1 provides
that a corporation that is a trustee is prohibited from investing trust
money in its own securities except as permitted under the new s. 15.1
(3).
The opinion(s) expressed in this article may not be shared by the Law Corporation and is the opinion(s) of the author. This article is not intended to substitute for the advice of a lawyer. Please consult a lawyer regarding any legal issues you may have.
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The opinion(s) expressed in this article may not be shared by the Law Corporation and is the opinion(s) of the author. This article is not intended to substitute for the advice of a lawyer. Please consult a lawyer regarding any legal issues you may have.
Shook, Wickham, Bishop & Field
906 Island Highway, Campbell River, B.C., V9W
2C3
Tel: (250) 287-8355
Fax: (250) 287-8112
Email: wickham@crlawyers.ca
