Anti-Bartlett Clauses and Their Role in Trust Administration

Geraint Ho discusses Anti-Bartlett Clauses. Such clauses play a crucial role in the Administration of Trusts, particularly where there are companies or businesses requiring active management. Originating from the case of “Bartlett v. Barclays Bank Trust Co. Ltd.” (1980), these clauses serve to limit a Trustee's liability and obligation to take an active role in managing these companies or businesses.

In essence, an anti-Bartlett clause allows trustees to take a back seat to the management of underlying companies and businesses to their respective management teams, so long as it is not aware of any fraud or dishonesty taking place. This ensures that Trustees can leave matters of the underlying businesses to the right people, while still fulfilling their fiduciary duties to the beneficiaries.

The inclusion of anti-Bartlett clauses in trust documents can enhance the flexibility and efficiency of Trust Administration. Ultimately, these clauses help to maintain the integrity of the Trust and safeguard the interests of the beneficiaries by promoting sound decision-making practices.

SHOW NOTES:
00:50 Trustee’s duties
01:42 Anti-Bartlett clauses
02:34 Are Anti-Bartlett clauses recognised by the Courts?
04:09 Are there any limitations in applying Anti-Bartlett clauses?

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