Trust Duties

In a recent Sunday Star Times article is a summary of Trust Duties which will be beneficial to anyone who has a trust or is a Trustee of a trust:

The standards a Trustee must meet include:

Being familiar with the trust assets.

Having a duty to act in the best interests of beneficiaries.Trustees owe a fiduciary duty to beneficiaries, which Ian Millard QC, describes as “single-minded”.

Being “even-handed” between beneficiaries unless the trust is a “discretionary” trust. Even then, all beneficiaries have a right to be considered.

Acting with due diligence and prudence. When in doubt, or dealing with difficult issues, the Trustee must seek advice, or apply to the court for direction.

Making decisions. They cannot delegate their decision-making powers, even to another Trustee. Often trust deeds require unanimity in all decisions.

Trustees have a duty to “make disclosure” to beneficiaries in relation to affairs of the trust. They must be able to properly account to beneficiaries.

A duty to investigate “suspicious circumstances” that are brought to their attention.

Not profiting from trust assets. Trustees must not enter arrangements that put them in a position where a reasonable person would see a conflict of interest.

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