Power of Trustees to Give Receipts:

If a trustee receives any money, securities, or movable property under a trust or power, and
gives a receipt in writing for it, that receipt will be considered a valid and complete discharge to
the person who made the payment, transfer, or delivery. The person making the payment will be
fully exonerated and will not be responsible for any loss or misapplication of the funds.1
Unless the trustee is a trust corporation, this section does not allow a sole trustee to give a valid
receipt for the proceeds of sale or any other capital money that arises from the sale of land under
a trust instrument that requires the land to be sold.2

Where trustees are authorized by the trust instrument or by law to pay money for the trust for any
purpose or in any manner, they shall be always have power to raise the money required through
sale, conversion, calling in or mortgage of all or any part of the trust property for the time being
in possession.3

Power to insure:
Trustees have the power to insure the Trust property for its full value, as if the property belonged
to them personally. The cost of the insurance premiums may be paid using either the income or
capital of the Trust fund. However, insuring the Trust property may not always be necessary if
the cost is too high compared to the benefit. In cases where the Trustees choose not to insure the
Trust property, they should provide a clear and preferably written explanation for their decision.
1
Trustee Act-Section 15(1)
2
Trustee Act- Section 15 (2)
3
Trustee Act-Section 17: Power to raise money by sale, mortgage, etc.
If they do so, they will not be held liable for any losses that may occur as a result of not having
the property insured.

Under common law, there is an implicit power for trustees to insure trust property, and the cost
of insurance premiums may be paid using the Trust's capital. In the case of Kingham v Kingham,
Chatterton VC4 indicated that trustees may have a responsibility to insure the Trust property in
certain situations. This suggestion implies that a power to insure must exist for trustees to fulfill
this duty.

The jurisdiction has had statutory powers of insurance in place since the Trustee Act was
introduced.

“A trustee may insure against loss or damage by fire in any building or other insurable property
to any amount, including the amount of any insurance already on foot, for the full value of the
building or property, and pay the premiums for that insurance out of the income thereof or out of
the income of any other property subject to the same trusts without obtaining the consent of any
person who may be entitled wholly or partly to the income.”5

Application of insurance money where policy kept up under any trust, power or obligation:
For the purposes of a trust, any money that a trustee or beneficiary receives under an insurance
policy covering loss or damage of trust property, whether caused by fire or other similar events,
is considered capital money.6
If the money is received in relation to property held under a trust for sale, it will be subject to the
same trusts, powers, and provisions that apply to money obtained through the sale of the property
under the trust instrument.7

Trustees may also use such money to rebuild, reinstate, replace, or repair the lost or damaged
property. However, any such use of the money must be subject to the approval of any person
whose consent is required by the trust instrument.8

4
Kingham v Kingham [1987] 1 IR 170
5
Trustee Act-Section 20
6
Trustee Act-Section 21(1)
7
Trustee Act-Section 21(3)(a)
8
Trustee Act-Section 21(4)
Deposit of documents for safe custody
“Trustees may deposit any documents held by them relating to the trust, with a banker, banking
company or any other company whose business includes the responsibility of the safe custody of
documents”.9 The trustee's obligation to maintain clear and precise records can be credited with
ensuring the safety and security of such documents.

9
“ Trustee Act-Section 22