Who really wants to be a trustee?

Home News & Views Who really wants to be a trustee?

The Trust Act 2019 outlines the obligations of trustees, and when taking on a trusteeship an individual or company must be aware of the risks involved. The settlor of the trust, a close friend or relative of the settlor, or an independent professional trustee may take on this role. If selecting an independent professional trustee, the trust funds must be Taking on a trusteeship is a big responsibility and comes with significant obligations and risks.

The Trust Act 2019 sets out the key obligations for trustees, including to know and uphold the trust's terms, to act honestly and in good faith, for the benefit of the beneficiaries, and to exercise their powers for a proper purpose. In taking on a trusteeship, there is typically no expectation of receiving a reward for services. When it comes to why individuals or companies would accept a trusteeship, it often is due to the settlors of the trust wanting to keep control of their assets. This can then bring with it potential risks should the relationship between the settlors breakdown or if the trust experiences bankruptcy. Alternatively, if trust funds are sufficient, independent professional trustees may be appointed or agreed upon by individual consent, but they expect payment for their services. Individuals or companies should look into the risks associated with being a trustee and understand the full extent of their obligations before agreeing to become one. If they are asked to be a trustee, they can seek clarification on potential risks associated with the role. It is also important to ensure trust documents are updated in line with current regulations and any new trustees brought on board sufficient to cover expenses.

If considering taking on a trusteeship, it is important to understand the risks and potential liabilities involved.

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Who really wants to be a trustee?

The Trust Act 2019 outlines the obligations of trustees, and when taking on a trusteeship an individual or company must be aware of the risks involved.

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