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Mr. Smith died leaving a will by which he left all his estate to three trustees to hold on trust for the four children of his best friend. The children are to inherit at the age of 18. Two of the children have reached the age of 18 and have received their share of the trust fund. The other two children are still under the age of 18. The trust fund comprises a portfolio of shares. One of the trustees has just died. Which of the following best describes whether it is necessary for a replacement trustee to be appointed?
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Under trust law, there is no mandatory requirement to appoint a replacement trustee if there are still two surviving trustees. The Trusts of Land and Appointment of Trustees Act 1996 states that the minimum number of trustees required to manage a trust is two when dealing with land, but there is no such minimum for trusts that do not include land, such as a portfolio of shares. Therefore, the remaining two trustees can continue to administer the trust without needing to appoint a replacement for the deceased trustee.
Key Point: This question addresses the requirements for the appointment of trustees under trust law. Understanding the rules and minimum requirements for trustees is essential for effective trust administration and ensuring the smooth operation of the trust.
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