MAY 2011 - DO YOU ACT AS A TRUSTEE

Do you act as a Trustee?  Or have you recently been asked to act as one?  

If so, you should be aware that Trustees have always been subject to a general duty to ensure that they act with the best interests of the beneficiaries in mind at all times.  More recently, however, the Trustee Act 2000 introduced a statutory duty of care which ensures that there is a consistent measure of the standard of competence and behaviour expected of all trustees, whether they be professional or lay trustees.  

The Act states that Trustees are required to exercise reasonable skill and care in all circumstances, having regard to any special knowledge or experience that the trustee has or holds themselves as having. 

It is realistic to expect a higher standard of care from a professional trustee for the services they provide than that of a family member acting as a trustee, who does not have specialist knowledge or experience as a trustee. 

The standard of care only applies to trustees when carrying out certain functions which include, but are not limited to: 

• exercising a power of investment; 
• reviewing investments; 
• insuring trust property. 

The need to consider advice.  

The Trustee Act 2000 states that, before trust assets are varied or the power to invest is exercised by the trustees, they must obtain and consider proper advice about the way in which these powers should be exercised.  The one exception to this is when the trustees conclude, taking into consideration all the circumstances, that it is unnecessary or inappropriate to seek advice. 

At CDFS we have produced a document, that is available on request, providing an overview of the Trustee duty and powers of investment, contained within the Trustee Act 2000.

Our highly qualified, experienced, Independent Financial advisers can offer a solution to the headache of ensuring that an appropriate strategy is devised and regularly monitored. 

Through our affiliation with Succession Advisory Services Limited we have access to leading edge technology, extensive research capability and the benefits of collective buying power enabling costs to be kept to a minimum. We now provide a platform that enables our clients to access wealth management services, executive benefit solutions and investment opportunities from an array of providers.  

Our core belief is that it is our responsibility to look after our clients financial needs through establishing and maintaining close personal and regular contact. This means that in addition to regular meetings we are always available via phone or email to answer any enquiries you may have thereby providing peace of mind through a first class service experience that our clients expect and deserve. 

Should you require any further information or would like a copy of the aforementioned booklet please contact David Mahood on 0141 942 6060 

CDFS is a trading style of Campbell Dallas Financial Services Ltd who are authorised and regulated by the Financial Services Authority. 

The Financial Services Authority does not regulate Trusts