[extract] It is well established that, provided that the trustee acts honestly and does not breach other duties (such as the duty to comply with the terms of the trust instrument and the duty to act with reasonable care), the determination of what serves the interests of the beneficiaries is very much, under general trust law, a matter for the subjective judgment of the trustee (though beneficiaries will be entitled to relief if what the trustee has done, or proposes to do, demonstrably cannot be justified as serving their interests.) In two important types of case, however, statute imposes what apparently is meant to be a higher, and presumably objective, standard.
Lehane, J R F
"Delegation of Trustees' Powers and Current Developments in Investment Funds Management,"
Bond Law Review:
1, Article 4.
Available at: http://epublications.bond.edu.au/blr/vol7/iss1/4