Information Sheets: Private

Trustees’ Responsibilities – Be Careful Traditionally, trustees used to regard their responsibilities as being almost exclusively the safeguarding of the assets of the trust. However, the Trustee Act 2000 raised the bar somewhat and it is clear that many trustees are unaware of the full extent of their responsibilities. Operating as a trustee in ignorance of one’s obligations is a risky strategy, particularly in the present economic environment. Under the Act, trustees have the specific responsibility to assess the suitability of trust investments and to keep these under review. In carrying out this task, they should consider investment spread and risk in the same way that other investors would do. Secondly, trustees are required to obtain proper advice when this is necessary or appropriate. The point at which the balance between making investment returns and managing the investment risk is struck will ... Read more