Trustees Flashcards
1
Q
Duties of trustees
A
- hold title documents to any trust documents
- to act in the best interests of the beneficiaries
- to exercise care in management of the trust
- to invest in accordance with the trust deed and trustee act 2000
- invest all cash unless it is to be paid out
- take into account the tax position of the trust and its beneficiaries
- keep proper accounts and produce them to the beneficiaries if needed
2
Q
Duty of care regarding the investments held within the trust
A
- due diligence
- allowable investments
- regularly reviewed
- take advice
- suitable
DARTS
3
Q
Investment power of trustees
A
- power to invest as outright owner - though can be restricted by trust deed
- must consider the suitability of the investment - and need for diversification
- keep investments under review - and vary them if appropriate
- must obtain and co side proper advice - unless considered unnecessary or inappropriate
