Trustees of personal estate are bound to use all due diligence iu getting in and reducing into possession all parts of the trust estate that may happen to be outstanding at the time of the commencement of the trust (1 Mad. 290), and in providing for the safe custody of the property. (1 Ed. 148.) They are also bound, where trust-money cannot be applied immediately, to invest it on proper security, so as to render it productive to the cestui que trust. In the absence of any specific direction as to investment in the trust-deed, the rule is that the trustees ought to invest in the public funds.
Where a trust-estate consists of renewable leaseholds, it is in general the duty of the trustee to provide for renewals. If there be an express trust to provide for the fines out of the rents and profits, the trustees should lay aside a proper proportion of the annual income for the purpose. (17 Ves. 485.) If there be no express direction for payment of the fines, the estate may be charged with the amount of the fine, and the rule of the court is that the tenant for life and remainder man must apportion the fine between them according to the value of their respective interests. (1 Bro. C. C. 440 ; 9 Yes. 560.) Trustees for sale, whether expressly such or by implication, have, in the absence of any express restriction on their powers, the right to use all reasonable discretion as to the time and mariner of effecting a sale. They cannot be compelled to enter into any other covenant than that against incumbrances by their own acts. The general rule is, that a trustee for sale cannot become the purchaser of the trust property either for himself or as agent for another ; and the ccstui que trust is at liberty to sot aside any such purchase, however fair, and though no advantage should have been gained by the trustee. (3 Ves. 750.) But a trustee is not absolutely prohibited from purchasing from the cestui que trust under certain circumstances, though the transaction is at all times one of great difficulty, and looked upon with great suspicion by the court. (9 Yes. 244.) Upon setting aside a purchase by a trustee, the court wil1in general allow for all repairs and improve ments effected on the property. (11 Yes. 226.) The cestui que trust will not be entitled to relief unless he make his application within a reasonable time ; and if while sui and with full knowledge of his rights he expressly confirms the purchase, he will not be allowed after wards to set it aside. (5 Ves. 680; 12 Ves. 355.)
IV. Of the powers of trustees.
The powers of trustees are either general or special. it is impossible to define exactly the general powers of trustees, the extent of which depends in each case upon the particular circumstances of the trust estate. It may however be laid down as a general rule, that whatever is compellable by suit is equally valid if done by the trustee without suit (4 Yes. 369) ; though, if a suit has already been instituted for the execution of the trust, wlsreby the management is taken out of the hands of the trustee, he ought to take no step without the sanction of the court. (10 Yes. 104.) V. Of ellowaness to trustees.
It is a settled rule that a trustee is not entitled to charge for his time and trouble In the management of the trust-estate, whether he be a professional person or not ; and the rule applies not only to trustees expressly nominated, but to all persons bearing a fiduciary character, such as executors, mortgagee., receivers, and committees of lunatics' estates. (10 Vess103.) Exceptions to this rule have been admitted in the cases of trustees for the estates of absentees In the West Indies and executors in India ; but the rule against such allowances to trus tees is only a general one in the absence of express directions b' the settler to the contrary, and there is no objection to a trustee's receiving remuneration forhis services, or to his being allowed to make profes sional charges, if the intention of the settler to that effect be clearly expressed. (7 Ves. 480; 3 Beay. 333.) A trustee may even bargain with his Cageds que trust for an allowance, though bargains of this kind are very narrowly watched by the court. Trustees not being allowed to charge for their own trouble, may on proper occasions, and where the business of the trust is troublesome or complicated, call in the assistance of agents at the expense of the estate.
A trustee, though not allowed to charge for his trouble, is entitled to all his expenses out of pocket; and even a specific remuneration given by the settler to the trustees is no reason for their not receiving an allowance for expenses. (7 Ves. 430.) The expenses incurred by a trustee in the management of the trust-estate are considered as a charge upon the estate, to the satisfaction of which the trustee is entitled before he can be compelled to convey.