When should a trustee seek judicial advice?

From PhilanthropyWiki

Title: When should a trustee seek judicial advice? Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar Author: Stanley Drummond Type: Journal article Focus: Trustee law Date: 2009 Publisher: LexisNexis, in the Financial Services Newsletter, Vol 7, No 7. Download:

Written by Stanley Drummond, Senior Associate, Financial & Investment Services at Deacons, this paper reports on a 2008 High Court decision which offers guidance to trustees about when they should seek judicial advice.

The High Court considered the operation of section 63 of the Trustee Act 1925 (NSW) and confirmed in 8 general points that there are no specific limitations on the application of this section, despite misconceptions to the contrary. S 63 permits a trustee to apply to the Supreme Court of NSW for judicial advice and protects the trustee if it acts on the advice given. There are similar provisions in all other States and Territories except Tasmania and the Northern Territory.

Drummond clarifies the lessons for Trustees that this decision offers and suggests that "Trustees will be more willing to apply for judicial advice in situations where they are unsure about the proper course of action to be taken, or where they simply wish to avoid being exposed to possible future allegations that the action taken amounted to a breach of trust."