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Private client · Trustee, private client fee-earner, family office adviser

Read a discretionary trust deed for trustee duties

Two new trustees have been appointed to a family discretionary trust set up in 2004 and have never seen the deed. The note tells them what they can do, what they must do, and where the deed is narrower than the general law.

First draft
A powers and duties note comes back from one run, ahead of the first trustee meeting.

The problem

Lay trustees sign minutes without knowing whether the power they are exercising exists. A deed that excludes the statutory power of advancement, or that requires unanimity for investment decisions, changes what a valid trustee resolution looks like. Getting that wrong is a breach of trust even when everyone acted in good faith.
  1. Step 01 of 05

    Add the deed and the history

    The trust deed, two deeds of appointment, the last three sets of trust accounts and the current investment policy statement go on one matter.

    Matters · Project Halcyon · SPA warranties and disclosureOpen

    Project Halcyon: SPA warranties and disclosure

    Buy-side warranty review, disclosure analysis and cited due-diligence grid.

    Client
    Halcyon Bidco Ltd
    Reference
    WC-2026-0412
    Practice area
    Corporate / M&A
    Jurisdiction
    England and Wales
    Responsible partner
    E. Vance
    No conflict check on file.

    Chat, on this matter

    Compare warranties with the disclosure letter.

    Three high-priority exceptions require action: the unregistered charge, the change-of-control right and the tribunal claim.

    Send a message… (@ to mention tools)BalancedPrepare for
    1. 25 Aug

      Disclosure exceptions matrix

      Chat

    2. 21 Aug

      Disclosure exceptions matrix

      Run · completed · 560 credits

    3. 18 Aug

      Project Halcyon: Disclosure Letter

      Document · indexed

    4. 16 Aug

      Project Halcyon: Share Purchase Agreement

      Document · indexed

    5. 4 Aug

      Matter opened

      Opened

  2. Step 02 of 05

    Run the powers and duties note

    Prepare for: Client Update, Deliver as: Word. The instruction asks for the powers as drafted, the duties that apply regardless, and every point where the deed narrows the default position.

    Agents · Contract Agent · New runMatter: Northgate · senior associate hire

    Agent

    Jurisdiction

    Prepare for

    Deliver as

    Instruction

    What should the agent look for?

    Documents

    Drop a contract, or pick one from the matter

    Also on the matter

    • Offer_letter_v3.pdf2 pages
    • Staff_handbook_2025.docx61 pages
    • Board_minute_14_Aug.pdf3 pages
    Platform model · zero data retention · audit register on
  3. Step 03 of 05

    Read the exclusions

    The deed excludes the statutory power of advancement and requires unanimous agreement for investment changes, both quoted with the clause number.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    6 items need your confirmation14 authorities · Where we looked

    Senior Associate Employment Contract: English Law Review

    Summary

    1. 1.

      Clause 9(c), non-competeHigh

      The 12-month prohibition on working for any law firm anywhere in the UK, Ireland or EU, in any capacity, is almost certainly wider than reasonably necessary and therefore unlikely to be enforceable.

      Tillman v Egon Zehnder Ltd [2019] UKSC 32
    2. 2.

      Clause 11, data and monitoringHigh

      Blanket contractual consent is not an adequate basis for general employment processing, special-category data or unrestricted monitoring.

      UK GDPR, Arts 6 and 9
    3. 3.

      Clause 4, holiday carry-overHigh

      The unconditional five-day cap conflicts with mandatory carry-over rights where sickness, statutory leave or employer failure prevents leave being taken.

      Working Time Regulations 1998, regs 13 to 13A
  4. Step 04 of 05

    Check the investment duty

    The current portfolio is set against the standard investment criteria and the requirement to take and consider proper advice, with the last recorded review being four years old.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    6 items need your confirmation14 authorities · Where we looked

    Senior Associate Employment Contract: English Law Review

    Summary

    1. 1.

      Clause 9(c), non-competeHigh

      The 12-month prohibition on working for any law firm anywhere in the UK, Ireland or EU, in any capacity, is almost certainly wider than reasonably necessary and therefore unlikely to be enforceable.

      Tillman v Egon Zehnder Ltd [2019] UKSC 32
    2. 2.

      Clause 11, data and monitoringHigh

      Blanket contractual consent is not an adequate basis for general employment processing, special-category data or unrestricted monitoring.

      UK GDPR, Arts 6 and 9
    3. 3.

      Clause 4, holiday carry-overHigh

      The unconditional five-day cap conflicts with mandatory carry-over rights where sickness, statutory leave or employer failure prevents leave being taken.

      Working Time Regulations 1998, regs 13 to 13A
  5. Step 05 of 05

    Take the meeting agenda

    Action items become the agenda for the first trustee meeting, including obtaining investment advice and recording the reasons for the next distribution decision.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    • Replace the UK/Ireland/EU non-compete with a 3 to 6 month restriction tied to competing corporate-law work.

    • Replace blanket data consent with a lawful-basis clause and a separate monitoring notice.

    • Remove the five-day carry-over cap and reference the statutory carry-over rules.

    • Narrow the client non-solicit to clients dealt with in the final 12 months.

    • Add an explicit working-time opt-out withdrawal mechanism.

    • Confirm the bonus clause states the discretion is exercised in good faith.

What comes back

A document, not a transcript.

  • The trustees' powers as the deed actually drafts them, with the two default powers it excludes.
  • The duties that apply whatever the deed says, including the standard investment criteria.
  • A gap analysis on the investment review, which is four years out of date on the papers supplied.
  • An agenda for the first trustee meeting, with the record-keeping each decision requires.

Authorities it checks

  • Trustee Act 2000, ss 1 to 5
  • Trustee Act 1925, s 31
  • Trustee Act 1925, s 32
Every source it may cite

What it does not do

  • It does not give investment advice, and it names taking proper advice as the trustees' own duty.
  • It does not make a distribution decision or draft a resolution exercising a discretion.
  • It reads the deeds supplied. An unrecorded appointment or a lost deed of variation would change the answer.

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