Looking for a rhyme, looking for a reason: reasonableness and the trustee

This article examines the standard of reasonableness required of trustees in the execution of their duties, particularly in light of the case of Perez v Equiom Trust Corporation (UK) Ltd & Anor. It explores the objective test for reasonableness, the heightened expectations placed on professional trustees, and the consequences of unreasonableness, including the impact on the trustee’s indemnity. The discussion delves into the nuances of trustee decision-making, the court’s role in intervening, and the implications of the Perez case on trust law and trustee conduct. The authors provide a critical analysis of the trustee’s obligation to act reasonably and the legal standards applied.