Trustee Delegation UK: When Trustees Can Delegate Powers and How It Works
Updated 31 May 2026 · 8 min read · Trust Law & Administration
Trustees are personally responsible for exercising their trust duties — but they are not required to do everything themselves. The Trustee Act 2000 and the Trustee Delegation Act 1999 set out when and how trustees can delegate investment management, administrative functions, and individual powers — and what they can never hand over to an agent.
The Two Types of Trustee Delegation
There are two distinct delegation regimes:
| Type | Legal Basis | Scope | Duration |
|---|---|---|---|
| Collective delegation to agent | TA 2000 Part IV ss.11–23 | Delegable functions (admin, investment) — not dispositive discretions | As agreed; ongoing review required |
| Individual delegation by power of attorney | TA 1925 s.25 (as amended by TDA 1999) | All trustee functions of the individual trustee | Maximum 12 months; renewable |
Collective Delegation: Trustee Act 2000 Part IV
Under Trustee Act 2000 ss.11–23, all the trustees together can appoint an agent to exercise their delegable trust functions:
- Asset management (s.15) — appointing an investment manager to buy and sell investments. The trustees must prepare a written policy statement specifying the investment strategy, ethical restrictions, and performance benchmarks. The manager must comply with the policy statement and report back to the trustees.
- Administrative functions (s.11) — managing property, collecting rents, dealing with third parties. The agent must act within written terms of reference.
- Nominees and custodians (ss.16–17) — appointing nominees to hold assets in their name (e.g., a stockbroker nominee account) and custodians to hold documents and securities.
Trustees must review the agent’s performance at appropriate intervals (s.22) and must intervene if the agent is acting in breach of the policy statement or causing loss. They are liable for their own failures in appointment, supervision, or review — but not automatically liable for the agent’s default if they fulfilled their own duties (s.23).
Functions That Cannot Be Delegated
Under TA 2000 s.11(2), the following cannot be delegated to an agent:
- Dispositive decisions — who receives income or capital; decisions on distributions, advancements, and appointments from the trust
- Appointment of new trustees — the decision to exercise a power to appoint trustees or vest trust property
- Occupation decisions — decisions under TOLATA 1996 s.13 on the rights of beneficiaries to occupy trust land
These restrictions exist because distributive and governance decisions are personal fiduciary duties that the trustees were specifically appointed to exercise — they cannot outsource the judgment of “who gets what.”
Individual Delegation by Power of Attorney: TA 1925 s.25
An individual trustee who will be temporarily unable to act — going abroad, entering hospital, or suffering short-term incapacity — can delegate all their trustee functions by a power of attorney under Trustee Act 1925 s.25 (as amended by the Trustee Delegation Act 1999). Key requirements:
- Duration is limited to 12 months from the date of the power.
- Written notice must be given to co-trustees and any person with power to appoint trustees before or within 7 days of the delegation.
- The delegating trustee remains personally liable for the attorney’s acts throughout the delegation period.
- The attorney can act as the “second trustee” for overreaching purposes — allowing a sale of trust land to proceed even when the trustee cannot sign in person.
Unlike the collective delegation regime, a s.25 individual delegation is not limited to “delegable functions” — the attorney can exercise all the functions that the individual trustee could exercise, including attendance at trustee meetings and signing trust documents.
FAQs
Can trustees delegate their powers?
Yes, but within strict limits. The general rule is that trustees must exercise their duties personally — the Latin maxim 'delegatus non potest delegare' (a delegate cannot further delegate) applied strictly at common law. Today, the Trustee Act 2000 Part IV significantly relaxed these rules: trustees may collectively authorise an agent to exercise any or all of their delegable functions, subject to conditions. They can also employ agents, nominees, and custodians for specific purposes. However, certain functions are non-delegable under s.11(2) TA 2000 and cannot be passed to an agent: these include any decision relating to whether and how to distribute trust assets, any decision whether to exercise a power to appoint a trustee, and decisions relating to the investment of trust funds that are not given to an investment manager under s.15. In addition, trustees cannot delegate the exercise of their dispositive discretions (who gets what from the trust) — only administrative and investment functions can be delegated.
What is collective delegation of trustee functions under the Trustee Act 2000?
Collective delegation under Trustee Act 2000 Part IV allows all the trustees together to authorise a single agent to exercise certain trust functions on their behalf. The main provisions are: (1) Section 11 — trustees may authorise any person to exercise any or all of their 'delegable functions' (essentially administrative, management, and investment functions, but not distributive/discretionary decisions). (2) Section 15 — the asset management function (buying and selling investments, managing the portfolio) may be delegated to an investment manager, provided the trustees comply with the statutory policy statement requirements and review the agent's conduct regularly. (3) Section 16 — trustees may appoint nominees to hold assets in their name. (4) Section 17 — trustees may appoint custodians to hold documents and securities. Before entering into an arrangement with an agent under s.11/15, trustees must prepare a written policy statement setting out how the agent should exercise their functions and the terms of the delegation. The trustees remain liable for their own negligence in appointing or supervising the agent — they must take reasonable steps to review the agent's performance at appropriate intervals (s.22).
When can an individual trustee delegate using a power of attorney?
An individual trustee (not all the trustees collectively) can delegate their trustee functions by a power of attorney under Trustee Act 1925 s.25 (as substituted by the Trustee Delegation Act 1999). This is designed for situations where a trustee is temporarily unable to attend to trust business — for example, during a period abroad, hospitalisation, or incapacity. Under s.25 as amended: (1) The attorney must be a person who is permitted to be an attorney — another trustee, a family member, or a professional. (2) The delegation is personal — the attorney exercises the functions of the individual trustee, not the trust as a whole. (3) The duration is limited to 12 months (though it can be renewed). (4) The trustee must give written notice to the co-trustees and any person with power to appoint trustees before or within 7 days of the delegation. (5) The delegating trustee remains personally liable for the acts of their attorney during the delegation. The s.25 individual delegation is not the same as the collective s.11 delegation — they serve different purposes and operate independently.
What trustee functions cannot be delegated?
The following trustee functions cannot be delegated under the Trustee Act 2000 or at general law: (1) Dispositive discretions — who receives income or capital from the trust; decisions on distributions, advancements, and appointments cannot be delegated to an agent (s.11(2)(a) TA 2000). (2) Appointment of new trustees — the decision whether to exercise a power to appoint new trustees or to vest trust property cannot be delegated (s.11(2)(c) TA 2000). (3) Decisions relating to the trust land that a beneficiary is entitled to occupy — decisions under TOLATA 1996 s.13 about the beneficiary's occupation rights cannot be delegated (s.11(2)(b) TA 2000). (4) Decision-making on the trust's fundamental structure — trustees cannot delegate decisions about the trust's overall strategy, the exercise of special powers, or the approval of trust accounts in a way that bypasses their duty to exercise personal judgment. These restrictions exist because trustee discretions are personal fiduciary duties — they were entrusted to the specific trustees named in the trust, not to agents those trustees might appoint.
Are trustees liable if a delegated agent causes loss to the trust?
Trustees are not automatically liable for loss caused by an agent they have validly appointed under the Trustee Act 2000. Under s.23 TA 2000, a trustee who has appointed an agent in accordance with Part IV is not liable for the agent's acts or defaults if the trustee complied with the duty of care when selecting the agent and entering into the terms of appointment. However, trustees remain liable for breaches of their own duty: (1) If they failed to exercise reasonable care in selecting the agent (chose an unsuitable person or company). (2) If they failed to enter into a proper written agreement setting out the agent's terms and a policy statement. (3) If they failed to review the agent's performance at appropriate intervals (s.22 TA 2000 review duty). (4) If they had reason to believe the agent was acting in breach and failed to intervene. Where the trust deed contains a trustee indemnity clause (limiting liability to fraud or wilful default), the trustees are further protected from claims for honest but negligent supervision failures. Trustees should keep records of the agent appointment process, the policy statement, and their periodic review meetings to demonstrate compliance.
What is the Trustee Delegation Act 1999 and when does it apply?
The Trustee Delegation Act 1999 amended the law on individual trustee delegation by power of attorney, primarily in the context of land held in a trust. Before the 1999 Act, a trustee could not by power of attorney delegate their trustee functions (including the two-trustee rule for overreaching) to another person — the delegate could not give valid overreaching receipts as a trustee. The 1999 Act changed this in two ways: (1) It amended Trustee Act 1925 s.25 to allow individual trustees to delegate all or specified trustee functions (not just property management) by power of attorney for up to 12 months. (2) It provided that a donee of a Trustee Act 1925 s.25 power of attorney can (as attorney for the trustee) act as a second trustee for the purposes of the two-trustee rule — allowing overreaching to work even though the second 'trustee' is acting through an attorney. This is particularly useful where a trustee is abroad or incapacitated and a sale or mortgage of trust land needs to proceed without delay. The 1999 Act also amended the Enduring Powers of Attorney Act 1985 (now replaced by the Mental Capacity Act 2005 LPA regime) to address overlap with trustee attorney provisions.
Appoint Trustees Who Can Work Together
A will that appoints trustees should give them sufficient statutory powers — including the power to delegate to investment managers and the ability to continue administering the trust if one trustee is temporarily unavailable. WillSafe’s DIY will kit for England and Wales puts a legally valid will in place; for trusts with ongoing investment management needs, specialist advice ensures the trustees have the powers they need.
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