Trust Management

Trust Management (the Management of Trusts) is an important task and responsibility. It is often a matter delegated to an experienced, trusted advisor who can provide stable, independent, expert attention to the best way to ensure the wishes are fully protected.

Trustees

Trustees need to be appointed.  Executors are the trustees of a Will and it is their responsibility to manage the terms of the Will.  The trustees of a such as a Discretionary Trust are often the executors but they can be other people too.

In nearly all cases of a Trust, there will be two Trustees needing to be acting as that is the requirement where there are property assets.

Trust Management Tasks and Duties?

Trustees take their duties from any specific terms within the Will or trusts drafted. They also take duties under the terms of the Trustee Act 2000 or other relevant legislation.  Trustees can be held personally responsible for some breaches of Trust and therefore the duties and responsibilities are serious.

The primary duties of care in Trust Management are twofold:

• to act in accordance with the purpose of the Trust as set out by the creator of the Trust (the Will-maker or the Settlor) and to respect any wishes and act in accordance with them; and
• to act with all care for the benefit of the Beneficiaries of the Trust. To act responsibly in the management of the functions.

The overall Trust Management duties are:

• To take care over the management of the Trust.
• To assist in the best management of the assets of the Trust in terms of maximising capital and income for the benefit of the beneficiaries. In this regard, with assets held in the control or management of Trustees, to take independent financial advice on the management of those assets as part of the compliance under the Trustee Act 2000.
• To consult with beneficiaries on an objective and fair basis.
• To act in accordance with the guidance of the Will-maker or Settlor as set out in the guidance documents (Memorandum of Wishes)
• To understand the options available for the transfer of assets to beneficiaries (ie gift options, loan options, life interest options)
• To understand the need to be aware of taxation issues or personal issues that might affect or alter the decision making and to adjust to fluctuations in circumstance in an appropriate way and to seek counsel or advice.
• To keep updated with legislative requirements;
• To meet with key beneficiaries at suitable or regular intervals.
• To meet with co-Trustees at suitable or regular intervals.
• To act with independence and in the best interests of the Trust objectives.

Trust Management – Our Brief

The overall brief is to attend to the proper and reasonable management of the trusts and to provide such advice and assistance to you as you so require. It is also to discharge the legal duties to the trust and its beneficiaries. It would usually involve making recommendations, acting on requests for advice, making decisions as to appropriate release of monies to beneficiaries, reviewing financial advice and taking appropriate actions. It could also include being responsible (with co-trustees) for ensuring appropriate taxation and registration of trusts.