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Legal Terms- General Power of Investment
A power established by the Trustee Act 2000, permitting a trustee to engage in any investment permissible if he were the absolute owner of the trust fund's assets. Previously, trustees were restricted to making specific *authorized investments. The trust instrument may explicitly exclude this broader general power of investing. Investment in land remains subject to some restrictions. The trustees, in exercising their general investment authority, must adhere to the Act's stipulations by evaluating the appropriateness of the proposed investment for the trust and the necessity for investment diversification, given the trust's specific circumstances. The Act mandates that trustees periodically assess investments using the same standard standards. Prior to making an investment, the trustee is required to acquire and evaluate adequate counsel, unless he reasonably deems it unnecessary or unsuitable to do so.
A power established by the Trustee Act 2000, permitting a trustee to engage in any investment permissible if he were the absolute owner of the trust fund's assets. Previously, trustees were restricted to making specific *authorized investments. The trust instrument may explicitly exclude this broader general power of investing. Investment in land remains subject to some restrictions. The trustees, in exercising their general investment authority, must adhere to the Act's stipulations by evaluating the appropriateness of the proposed investment for the trust and the necessity for investment diversification, given the trust's specific circumstances. The Act mandates that trustees periodically assess investments using the same standard standards. Prior to making an investment, the trustee is required to acquire and evaluate adequate counsel, unless he reasonably deems it unnecessary or unsuitable to do so.
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