Investors’ Chronicle quotes Katie Talbot on the risks and responsibilities of undertaking a trustee position

The responsibilities associated with acting as a trustee extend far beyond an administrative role, carrying significant legal and fiduciary obligations. In an article examining the realities of trusteeship, Investors’ Chronicle explores the potential risks individuals face when accepting trustee appointments, particularly where there is a lack of understanding of the duties involved.

The core obligations trustees owe to beneficiaries include acting in good faith, exercising reasonable care and skill, managing trust assets appropriately and avoiding conflicts of interest. As such, trustees must navigate some practical challenges when interpreting trust provisions or making decisions concerning trust assets. 

Additionally, breaches of trust can arise not only through deliberate misconduct but also through errors made without malicious intent. Trustees who fail to comply with the terms of a trust or who do not seek appropriate professional advice where required may face serious consequences, including personal financial liability. 

Katie Talbot, Consultant in our Private Client team, comments in Investors’ Chronicle:

The role demands considerable time and effort, is unpaid (unless you act in a professional capacity) and may expose you to personal liability.

You can protect yourself with knowledge – interrogate the powers and protections given to you under the trust deed, understand the fiduciary duties and responsibilities you must uphold and ensure open lines of communication with your professional adviser(s) and co-trustees.

Read the full article in Investors’ Chronicle here (subscription required).