Trusts—trustees in financial proceedings
Produced in partnership with Rebecca Dziobon of Penningtons Manches Cooper
Trusts—trustees in financial proceedings

The following Family practice note produced in partnership with Rebecca Dziobon of Penningtons Manches Cooper provides comprehensive and up to date legal information covering:

  • Trusts—trustees in financial proceedings
  • What is a trustee?
  • Court supervision of trustee duties
  • Duty of confidentiality—implications for disclosure
  • Request for disclosure by a beneficiary
  • Letters of wishes
  • Request for disclosure by a non-beneficiary party or the court
  • Privacy issues
  • Privileged advice to trustees
  • Trustee exercise of discretion to assist a beneficiary
  • More...

Trusts—trustees in financial proceedings

What is a trustee?

Trustees hold the legal title to the trust assets and control and manage them for the benefit of the beneficiaries. They are chosen by the settlor and can be professionals, trust companies or private lay individuals. Trustees' duties are prescribed by the trust instrument, by statute and by equitable legal principles as developed by case law. Some offshore jurisdictions have developed heavy regulation of trust companies (which operate as trustees) to ensure proper standards are met.

Trustees are in a fiduciary position. Broadly, the fiduciary duties of a trustee are:

  1. a duty to obey the directions of the settlement

  2. a duty of good faith

  3. a duty not to put themselves in a position of actual or potential conflict with the interests of the person to whom they are a fiduciary, without express consent of the person to whom the duty is owed if that person is of full age and capacity.

  4. a duty to keep beneficiaries informed

  5. a duty of confidentiality, and

  6. a duty not to profit from their fiduciary position—although trustees are often remunerated in accordance with the trust instrument, by court authorisation, or in accordance with the provisions of sections 28–29 of the Trustee Act 2000 as to the remuneration of professional trustees

Trustees will not generally owe any duty to a stranger to a trust, such as

Related documents:

Popular documents