They have responsibility for the day-to-day operation of the trust and have obligations to protect and maintain the assets of the trust.
In a discretionary trust, they will also decide who receives the income and capital from the trust.
Care should be taken as to the choice of the trustees of all trusts, but particularly discretionary trusts as (unless earlier removed, by the appointor) the trustees will decide how they assets are invested and who the income and capital are paid to.
Trustees must act in accordance with the trust deed governing the trust and must exercise due care and attention.
The trustee can be a corporate entity or individual(s).
Family trusts may include discretionary trusts, unit trusts, hybrid trusts and testamentary trusts and may or may not make family trust elections for tax purposes – your adviser will help you through the maze.
24th-February-2009 | 