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An honour.
And a responsibility.
Someone has asked you to be a trustee. Before you say yes, you need to understand what you are agreeing to. Being a trustee is a serious legal role with real responsibilities.
What is a trustee?
A trustee holds and manages assets on behalf of the trust's beneficiaries. You don't own the assets personally. You hold them for others, according to the rules in the trust deed.
Key Point
Once assets are transferred to a trust, they're no longer yours (or anyone else's personal property). As trustee, you manage them for the beneficiaries, not for yourself.
Questions to ask first.
Before agreeing to be a trustee, get answers to these questions. Don't rely on assumptions or verbal explanations. Read the trust deed yourself.
What is the trust for?
Is it a family trust holding the family home? An investment trust? A trust for business assets? Understanding the purpose helps you know what decisions you'll need to make.
Who are the other trustees?
Are they family members? Is there a professional trustee? How do decisions get made - majority vote or unanimous agreement?
Who are the beneficiaries?
These are the people you are ultimately responsible to. Under the Trusts Act 2019, beneficiaries have rights to certain information.
What assets are held in the trust?
Property needs insurance and maintenance. Investments need monitoring. Each type of asset brings different responsibilities.
Are there trust liabilities or debts?
Trustees can borrow money, hold mortgages, or incur other liabilities on behalf of the trust. You need to know about these before accepting the role.
How is the trust currently managed?
Ask to see recent meeting minutes, annual accounts, and trustee resolutions. This shows how active the trust is.
Your legal duties.
These mandatory duties apply to all trustees. You cannot contract out of them.
Know the trust deed
You must know and understand the terms of the trust you are administering.
Act honestly and in good faith
You must act with integrity and for proper purposes.
Act for beneficiaries' benefit
Your decisions must be for the benefit of beneficiaries or to further the trust's purposes.
Exercise reasonable care
You must apply the care and skill a prudent person would use managing someone else's affairs.
No personal benefit
You cannot use your position or trust information for personal advantage (unless the deed allows it).
Act impartially
If there are multiple beneficiaries, you must consider their different interests fairly.
Beneficiary Disclosure Requirements
Under the Trusts Act 2019, trustees must provide certain information to beneficiaries. This can surprise new trustees who expected family trust matters to stay private.
What you must disclose:
- - That the trust exists and they are a beneficiary
- - The name and contact details of the trustees
- - That they can request more trust information
- - Decisions affecting their entitlements (on request)
Personal liability.
Trustees can be personally liable for mistakes. This might include:
Improper distributions
You could be required to repay amounts distributed contrary to the trust deed.
Failing to protect assets
If trust property is lost or damaged through negligence, beneficiaries could sue.
Acting outside the deed
Decisions made without authority can make you personally responsible for losses.
Conflicts of interest
Using your position for personal benefit can result in having to account for profits.
Some trust deeds include indemnity clauses that protect trustees from honest mistakes. Check whether the deed you are being asked to accept has these protections.
When to decline.
Consider declining if:
Declining doesn't mean you don't care. It means you are being honest about what you can take on.
Key Takeaways
Read the trust deed before agreeing. Don't rely on verbal explanations.
Understand the assets, debts, and who the other trustees and beneficiaries are.
The Trusts Act 2019 imposes mandatory duties you cannot contract out of.
Trustees can be personally liable for mistakes. Check if the deed protects you.
It's okay to decline. Better to say no than to do the job poorly.
Related Guide
Learn how trusts work and understand trustee responsibilities.
Read the Trust Basics GuideRelated Reading
Understanding your trustee duties under the Trusts Act 2019
The Trusts Act 2019 imposes clear duties on all trustees. Understanding these obligations helps you fulfil your role and avoid personal liability.
Do I still need a trust in 2026?
Trusts have changed. Tax rates increased. Asset protection is harder. Here's how to evaluate whether a trust still makes sense.