Since the introduction of The Trustee Act 2000, trustees now have specific responsibilities concerning the servicing and administration of trust funds.
The duty of care applies to professional and lay trustees, though higher standards are expected from professional trustees.
A statutory duty of care applies to trustee investments for both new and existing trusts. The trustees must take into account the Trust's objectives and the suitability of the investments to be held. They have a duty to protect the value of the trust fund, and make investments to suit the type of trust arrangement and its objectives. It is important to take into account costs, risk, and any specific requirements, e.g., to invest in an ethical or sociably responsible manner.
Almost invariably, a diversified portfolio of assets will be used to meet the trust's specific objectives, which could be to provide capital growth, income or a combination of both. Trustees also have a duty to review the assets held within the trust on a regular basis. This can be a time-consuming and lengthy process, especially if the trust administrators are not experienced investors.
It is therefore important to seek independent and impartial advice on trustee investments. We regularly advise new and existing trustees on suitable asset allocation investment strategies.
The Financial Conduct Authority does not regulate tax advice.
We can help in the following ways:
- Preparation of a written Trustee Investment Statement.
- Advising on a suitable investment vehicle and asset allocation
- Tax planning for Trusts
- Use of Managed Portfolios, ensuring on-going quality of investments and adherence to stated objectives and risk tolerance.
- Regular Trustee Investment reviews, including documentation.