Role and duty of trustees

By Emma Lotriet

There are six main duties that the trustee must be aware of when dealing with a trust:

Duty to act in personal capacity

Trustees may seek various types of advice from outside parties, but must act independently. This means that the final decision on trust matters must be made by the Trustees.

Duty to consider the beneficiaries

A trustee must not be biased, and must consider all beneficiaries when making decisions.

Accountability

A trustee must keep records of all trust related accounts and administrative matters. Trustees must also respect beneficiaries' requests for any trust-related information.

Obligation to the terms and conditions of the Trust

A trustee must know and abide by the terms of the trust, as set out in the trust deed. They are bound by the wishes set out in the trust deed. In other words, the funds must be used in accordance with the founder's wishes and not according to the trustees' unpredictability.

Duty of loyalty

A trustee must administer the trust for the benefit of the trust beneficiaries. Their own interests may not conflict with those of the beneficiaries.

Duty to manage the trust effectively

A trustee takes on the duty of managing the trust effectively. In order to do this, a trustee must have a good knowledge of the terms of the trust in order to manage the trust effectively. In order to do this, a trustee must have good knowledge of the terms of the trust, the trust's assets and liabilities, the circumstances of the beneficiaries and the purpose of the trust.

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