Being a Trustee can be a daunting and time consuming process, and it is often the case that trustees don’t have a clear understanding of the impact of their decisions. Sometimes, decisions can be made that don’t completely benefit the Beneficiaries and can impact their inheritance. Trustees are an important part of the management of assets – they have a number of responsibilities and if they don’t carry out their duties properly, can be held personally liable for any losses made by the Trust. A Trustee’s responsibilities can include:
Reviewing investments made by the Trust
Applying the income of the Trust for the maintenance, education or benefit of a beneficiary
Acting in the best interests of the Beneficiary
Take into account the wishes of the Settlor (and any tax considerations)
Ensure fairness between Beneficiaries
Many people choose their children and other family members to be the Trustees of their estate, but this can cause conflicts when making difficult and sensitive decisions, particularly if the Trustees are also beneficiaries of the estate. A conflict can also lead to the inheritance being distributed incorrectly, leaving the assets vulnerable to attack from divorce, care costs, creditors and unnecessary taxation. Appointing a Professional Trustee ensures that dealing with the deceased’s assets is a completely unbiased process, and that the settlor’s wishes are completely upheld. Professional Trustees also take into consideration the Tax status, financial status and marital situation of the beneficiaries, ensuring that assets won’t be lost to creditors or future ex-spouses.
For more information contact me on: +44 7831 379562 (UK) or +34 622 374 738 (Spain), or email me at firstname.lastname@example.org