Trustees are legally responsible for managing the trust in accordance with its terms and for the benefit of its beneficiaries.
Their duties may include protecting and investing trust assets, maintaining accurate accounts, making appropriate distributions and keeping beneficiaries informed. Trustees must act impartially, avoid conflicts of interest and must not use trust property for their own benefit unless the trust expressly permits it.
Trustees can also have tax and reporting responsibilities. They may need to register the trust, report income and gains, submit tax returns, pay tax from the trust and provide beneficiaries with information about income they receive.
Trustees can be held personally accountable if they breach their duties or fail to meet the trust’s tax obligations. Anyone considering the role should therefore understand the responsibilities before accepting the appointment.