What is a trustee?
A trustee is an individual or entity designated to oversee a trust's administration.
The responsibilities of a trustee include managing the trust's assets, making investment decisions, and ensuring that the trust's objectives are met. A trustee's main responsibility is trust administration which requires attention to detail, financial knowledge, and a commitment to fulfilling the intentions of the trust creator.
The responsibilities of a trustee include managing the trust's assets, making investment decisions, and ensuring that the trust's objectives are met. A trustee's main responsibility is trust administration which requires attention to detail, financial knowledge, and a commitment to fulfilling the intentions of the trust creator.
Common types of trustees
| Type | Description |
|---|---|
| Individual trustees | These are individuals appointed to act as trustees. They could be family members, friends, or individuals chosen for their integrity and competence. |
| Corporate trustees | Corporate trustees are entities, often financial institutions or trust companies, that specialise in trust management. They bring professional expertise and stability to the role. |
| Professional trustees | Professional trustees are individuals with specific expertise relevant to the trust, such as legal, financial, or accounting professionals. They may be appointed for their specialised knowledge. |
| Co-trustees | Co-trustees are multiple trustees, either individuals or entities, who collectively manage the trust. Co-trustees may be appointed simultaneously, sharing the responsibilities outlined in the trust deed. |
| Independent trustees | Independent trustees are individuals who are not closely related to the beneficiaries or the trust's creator (settlor). They are appointed to bring objectivity and impartiality to the decision-making process. |
| Family trustees | Family trustees are individuals who are also beneficiaries of the trust. While this can create a close connection between the trustees and beneficiaries, potential conflicts of interest need to be managed carefully. |
| Special purpose trustees | Special purpose trustees may be appointed for trusts with specific goals or charitable purposes. These trustees possess expertise or qualifications relevant to the trust's unique objectives. |
| Discretionary trustees | In trusts with discretionary distribution powers, the trustee has the discretion to decide when and how much to distribute to beneficiaries, based on the criteria outlined in the trust document. |
Updated on: 08/04/2024
Thank you!