Trustee Role

Question 1

What is the duty of trustee

Answer 1

Duty to maximise return of the trust fund
Duty of care - act prudently
Obtain appropriate professional investment advice make sure they monitor investments and invest the trust money probably to keep proper accounts and produce them to beneficiaries if and when required
Not to risk the fund Trustees have the power to delegate trustees functions are personal and cannot be delegated however they can appoint agents nominees and custodians providing the trustees exercise their duty of care they will not be liable for the loss due to the acts of any person appointed

Question 2

What are the conditions that need to be met to dissolve or to end the trust

Answer 2

All beneficiaries
Ascertain no further possibility of further beneficiaries
All beneficiaries need to be a full age and have capacity
is unanimous agreement of all beneficiaries to dissolve the trust

Question 3

Different types of trust

1. Fixed trust - Absolute or bare trust - settlor cannot change mind on beneficiaries I.e when individual is a minor - life tenant - interest remainder
2. flexible trust
   - power
3. power if appointment - trustee have power to amend beneficiaries

Answer 3

Disabled person - unable to administer- mental illness within meaning of mental health act or in receipt of attendance allowance - must be entitled to any income
Vulnerable minor - under 18 preceded by at least 1 parent
Charitable trust - exempt from income tax and cgt no iht on gift
Statutory trust mwpa- single or own life divorce does not dissolve if spouse is named
If spouse isn’t named then need to be married on death of settlor

Question 4

Automatic overseas test

Answer 4

1. In uk less than 16 days in the current tax year
2. Not uk resident in the 3 previous tax years and less then 46 days in the current tax year
3. working overseas seas full time less than 91days in uk , of which less than 31days spent working in uk for 3 hours or more