Acting as a Trustee
- pete68737
- May 6
- 2 min read
When someone passes away and their Will creates a trust, the people appointed to manage that trust — known as trustees — take on a significant legal and ethical responsibility. Acting as a trustee involves managing assets on behalf of the beneficiaries, often for many years.
In this post, we explore what it means to be a trustee under a Will in England and Wales, what responsibilities the role brings, and why careful consideration is needed before accepting the position.
What is a Will Trust?
A Will trust (sometimes called a testamentary trust) is created upon a person’s death according to the terms set out in their Will. Common reasons for creating a Will trust include:
Protecting assets for young or vulnerable beneficiaries
Providing for a spouse or partner while preserving assets for children
Managing inheritance tax planning
Once the trust is established, it is the trustees who will oversee the assets and ensure the trust is administered according to the wishes set out in the Will and the relevant law.
The Role of a Trustee
Trustees are the legal owners of the trust property, but they do not own it for their own benefit. Instead, they hold and manage it on behalf of the beneficiaries. Trustees must always act in the best interests of the beneficiaries and in accordance with the terms of the trust.
Key trustee duties include:
1. Familiarising Themselves with the Trust
Trustees must carefully read and understand the terms of the Will and any accompanying trust documents.
2. Managing Trust Assets
Trustees must safeguard and, where appropriate, invest trust assets to protect and grow the trust fund for current and future beneficiaries.
3. Acting Impartially
Trustees must treat all beneficiaries fairly and avoid favouring one over another unless the trust specifically allows it.
4. Complying with Tax and Reporting Obligations
Trustees are responsible for ensuring that tax returns are filed and taxes paid as required by HMRC, as well as keeping accurate records of trust activities.
5. Distributing Trust Income or Capital
Where required by the trust, trustees must make payments or transfers to beneficiaries, exercising discretion where allowed.
Accepting the Role of Trustee
Being asked to be a trustee is a sign of trust and confidence, but it is not a role to be taken lightly. Trustees can be personally liable if they breach their duties, even unintentionally.
Before accepting the role, potential trustees should consider:
The complexity of the trust
The expected duration of the trust
Their ability to act impartially and with due diligence
Whether they may wish to appoint professional help
Trustees often work closely with solicitors, accountants, and financial advisers to help discharge their duties correctly.
Have You Appointed the Right People in Your Will?
Creating a trust in your Will can protect your loved ones and ensure your wishes are carried out exactly as you intend. However, it is vital to choose the right trustees — people who are capable, trustworthy, and willing to take on this important task.
If you haven’t yet made a Will or appointed trustees, now is the perfect time.
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