Trustees: Need to know 10 – the value of professional trustees

The last item on our list of 10 vital facts for the estate trustee concerns the value of professional trustees.  A professional trustee owes a professional duty of care in exactly the same way as to a client, and will have to be paid for his or her advice in most cases.  Amendments to trustee legislation allow payments to a professional trustee despite the general rule that trustees should not benefit personally from their role.  The professional involvement of a professional trustee should ensure that the trust will receive close professional attention and supervision.  It seems inevitable that there will be a continued growth in the use and deployment of professional trustees in view of the onerous responsibilities associated with the work of a trustee.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

STOP STOP PRESS

As previously advised the event at Ragley Hall on 21 April is full.  We are now therefore offering a SECOND DAY at Ragley on 22 April – please use the contact form or follow the details in the link above to register your interest for 22 April.

STOP PRESS

The event at Ragley Hall on 21 April is now FULL.  There are still places at Rhug for Tuesday 17 March.  We are also keeping a reserve list for Ragley in case anybody drops out, and with a view to arranging another day if there is enough interest – so do get in touch if you would like to register for this option, arrange an in-house session or host an event in another area.

This is the last of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.  I hope you have found them useful.  For more information and an opportunity to meet others involved in the work of trustees do book in for one or other of the forthcoming trustee training days at Rhug and Ragley.

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Trustees: Need to Know 9 – Fiduciary Duties

Number nine on our list is the fiduciary duty of a trustee.  This duty is absolute and imposes a number of important obligations on the trustee.  These include duties to act in good faith, not to profit personally from the role, to avoid conflicts of interest, to account to the beneficiaries and a number of others.  In addition the Trustee Act 2000 imposes further duties regarding investment.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

STOP STOP PRESS

We have now organised a second day at Ragley Hall to take place on 22 April 2015 – please use the contact form or the link above to reserve a place.  Places seem likely to go quickly in view of the demand we have experienced so far.

STOP PRESS

The Trustee Training Day at Ragley Hall now has only one or two places left.  There are still places for the day at Rhug Estate on 17 March.  I am keeping a reserve list for the Ragley event in case of any drop-outs, or with a view to arranging a further day if there is enough interest.

This is the ninth of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.

Trustees: Need to Know 8 – trustee powers to delegate

Number eight on our list of trustee ‘need to know’ is the limited powers available to trustees to delegate their responsibilities and powers.  These vary between the collective delegation of authority by all the trustees and the power of an individual trustee to delegate.  The individual trustee can delegate his or her authority through a power of attorney, but there are limitations.  It must be renewed every year, the trustee remains liable for the actions of the attorney and all the other trustees must be notified promptly.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

This is the eighth of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.

Trustees: Need to Know 7 – Trusts can’t last forever

In general private trusts cannot exist forever, due to the rule against perpetuities.  Older trusts may be limited by a ‘royal lives clause’ or similar, while newer trusts will now be covered by the Perpetuities and Accumulation Act 2009.  A key point is that some older trusts may now be entering their final decades so it will be vital that trustees start to consider the long-term future of the assets under their control.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

This is the seventh of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.

Trustees: Need to Know 6 – Third thing for the new trustee

The third thing that the new trustee should do is to review the trust records and accounts to ensure that all is in order, with professional help if necessary.  In particular it is important to ensure that there have been no breaches of trust or other malfeasance.  Trustees are entitled to be indemnified against external liabilities and it is worth checking that suitable insurance policies are in place.  A professional trustee also needs to ensure that an appropriate fee basis has been agreed and fully understood.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

This is the sixth of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.

Trustees: Need to Know 5 – Second thing for the new trustee

The second thing the new trustee should ensure is that the assets are all secure.  Are they there?  Are they in good condition?  Is maintenance up to date and are they safe?  Are they insured?  Trustees generally have an overriding right to arrange insurance, and to pay the premium from either trust income or capital.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

This is the fifth of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.

Trustees: Need to Know 4 – First thing a new trustee should do

The first thing a new trustee should do on taking up the appointment is to read the trust deed and make sure it is fully understood.  Although the law intervenes in a number of ways with the administration of trusts, the main trust deed is nevertheless the key document which governs how the trust was created, what type of trust it is, the entitlements (or otherwise) of beneficiaries, the rights and responsibilities of the trustees and a host of other vital facts.  Ignorance of this important document will be no excuse for the less than diligent trustee.

This will be one of the topics reviewed in more depth during the forthcoming Trustee Training Events at Rhug estate and Ragley Hall, organised in conjunction with the CLA. For more details:

Trust Programme Spring 2015

This is the fourth of 10 brief ‘Need to Know’ notes for trustees and their professional advisers.