PUBLIC office of public trustee is now, by the Public Trustee Act, 1906, established as e. corporation sole, with perpetual succession and a common seal. Instruments sealed with the seal are not liable to a higher stamp duty than if they were signed by an individual. He is appointea as stated below.
The Act is an attempt to meet the great difficulty of getting private trustees to act. In all raiaks and conditions of life it has been found that few persons care to undertake the troublesome and unsatisfactory duties of trustee. Among the poorer classes it is hopeless to get people to administer properties thoroughly, which though small, are of the utmost importance to the families of the testators. There is also the trouble of dis honest trustees ; the temptation is grciat, where they act as sole trustee and find themselves in financial difficulty, to convert the trust funds to their own uses. This has caused a great amount of distress in many cases, and it is hoped the Act will go far to give security and justice to helpless dependants of all classes of trustees.
Powers and dutiee.—The public trustee can (a) act in the adzninistration of estates of small value ; (b) act as custodian trustee ; (c) act as an ordinary trustee ; (d) be ap pointed to be a judicial trustee ; and (e) be appointed to be the administrator of the pro perty of a convict under the Forfeiture Act, 1870, either alone or jointly with other per sons. H6 is to have the same powers, duties, liabilities, rights, and inununities as a private trustee. He can decline to act or make conditions before actfhg in any trust, but cannot refuse the trust on the grolind only of the small value of the trust property. He cannot undertake any trust (a) which involves carrying on a business, except where au thorised by the rules made under this Act ; (b)under a deed of arrangement with creditors ; (c) of estate known or which he believes to be insolvent ; (d) exclusively for religious or charitable purpnees. But nothing in the Act affects or abridges tho powers and duties of the official jr....,tees of charity lands or funds.
Administration ol small estates.—Wbere the value of the estate is under £1,000 arid the public trustefils of opinion that the party is entitled to go to the Court for administra tion, such party may apply to the public trustee, who, if he believes the claimants are of small moans, ellen administer the estate. Nevertheless ho may refuse if ho sees good reaaon for so doing. The trust must be undertaken in writing signed and sealed by the public trustee. The property vests in him, as also does the right to transfer or call for the transfer of any stock as if a vesting order had been made by the High Court under the Trustee Act, 1893. The former trustees are discharged from liability thenceforth except as to acts done by them before the vesting of the estate. The public trusteo cannot him self transfer the stock without the leave of the Court, but he can transfer any copyhold land. He can exercise any powers given him by the rules, and can take the opinion of the Court on any point arising without tho necessity of an action. The Court can order the public trustee to administer tho estate in any Calif) where an ruction has been brought, and the estate is small, or for some other reason it is expedient.
Custodian trustce.—The public trustee can be appointed custodian trustee (a) by order of the Court on the application of a party who has the right to apply for a new Trustee ; (b) by the testator, settler, or creator of a trust ; (c) by any person having power to ap point now trustees. The former trustees in such cases are the managing trustees. The
provisions Eta to custodian trustees apply to any banking or insurance company or other body corporate acting as such trustee and the salary or romuneration is to be the same. The estate is conveyed t,o the custodian trustee as sole trustee, and vesting ordera for this purpose may bo made under the Trustee Act, 1893. He has the custody of all securities and documents of title, but the managing trustees aro entitled to freely inspect and copy. He must concur in and perform all acts necessary to enable the managing trustees to carry out their powers and duties (including payment of money or securities into Court), unless the act would be a breach of trust or involve personal liability as to calls. 'Unless he so concurs he is not liable for any act or default of such managing trustees. Ho is also to make all payments and receive all monies ; but he can allow tho income to be paid to the managing trustees or to their agent or bank, and he is then exonerated frorn seeing to tho ctpplication of such monies or from liability for the loss or misapplication thereof. In counting the number of Trustees for the purposes of the Trustee Act, 1893, he is not to be counted, and, if acting in good faith, he is not liable for taking the written statements of the managing trustees as correct in reference to such matters as births, deaths, mar riages, pedigree, or relationship, in regard to the title of the estate or for acting on legal opinions obtained by the managing trustees. The managing trustees retain the manage ment of the trust property, and the exercise of any power or discretion. They appoint new trustees (where necessary) ; but tho custodian trustee bas an equal power with them of applying to the Court to appoint trustees. They, the custodian trustee or a beneficiary can apply to the Court to terminate the custodian trusteeship, on proof that it is the wish of all the beneficiaries or on tile ground of expediency ; and the Court then can terminate the office.
As a trustee, executor, etc.—The public trustee may be appointed under the name of public trustee or any other sufficient description as a trustee of a Will, Settlement, or any deed creating a trust, or to perform any of the duties allowed by the Act, whether the deed was made before or after the date of the Act, and either as an original or as a new trustee. He is equal to a private trustee, except that ho may be sole trustee, al though two or moro trustees wore originally appointed. Where he has been appointed a co-trustee may retire although there are not more than two trustees, and that vrithout the consents required by the Trustee Act of 1893. If the trust deed contains a direction against the appointing of a public trustee, he candot be appointed, unless the Court order his appiontment. Notice of the appointment of a public trustee must be given to all the beneficiaries resident in Great Britain, or t,o the guardians of infant beneficiaries. The beneficiary is entitled within twenty-one days to apply to the Court, and if the Court thinks it expedient an Order will be me,de prohibiting the appointment. The failure to give notice to a beneficiary does not invalidate any appointment made. Should the rules allow the public trustee being appointed to act under probates of Wills or letters of ad ministration, the Court can grant such probate to him as public trustee. Ile is to act equallewith any &ler person appointed, but need not be oited if a grant is made to such other person. The widower, widow or next of kin is to be preferred to the public trustee,