Trusts
Why create a Trust?
A trust will typically be created in order to protect beneficiaries who may not be able properly to look after assets themselves e.g. because of their age or mental incapacity.
Trusts can also be created for tax-planning reasons.
What responsibilities does a trustee have?
There is a duty on trustees to invest funds in their hands with a view to producing a good financial return for the trust. In performing this duty they must exercise proper care. This requires more than mere honesty, good faith and sincerity - there must be proficiency and competence too.
Trustees have to exercise their duties honestly and fairly.
Under present legislation, it is essential that trustees take proper independent financial advice on the types of investments to be included in the trust, and the degree of diversification. This has to be done in the light of what is known about the needs and circumstances of the beneficiaries, and, of course, the wishes of the person making the trust.
Chris King for trust advice in the Norwich Office 01603 693530
Susan Dawe for trust advice in the Sheringham Office 01263 823398