In addition to advising individuals on wealth management, we can also advise people who have been appointed as an attorney, a deputy or a trustee. All of these roles involve making financial decisions on behalf of somebody else and being able to explain and justify those decisions.
Whichever you’ve been asked to do, we’ll guide you through a process that will establish a suitable investment strategy and demonstrate that you have met your legal obligations and responsibilities. You’ll also benefit from our review service, which will help you to keep the investments on track.
Being trusted to look after somebody else’s money can seem like a huge responsibility. If you’ve ever spent time doing ‘the school run’ and another parent asks if you can pick up their child – that can be a little bit daunting. Misplacing your own child between the playground and the car would be bad enough, but the consequences of losing somebody else’s offspring always seems that little bit more serious…
In some ways, the consequences of ‘slipping up’ as a trustee can be more serious than mismanaging your own money. However, we can guide you and support you on an ongoing basis and make sure you are following all the correct procedures.
So, how do you end up being a trustee? Usually, you’ll have been asked by a friend or a family member and it’ll be because you are seen to be a trustworthy individual. The person you’ve been asked to act as a trustee for may possibly be a child (perhaps a young relative or friend whose parents have died); somebody who has a permanent disability and isn’t able to manage their own affairs; or an older person who needs to pay for long-term care.
Usually, there will be three types of person involved in a trust. You, as the trustee; the settlor – who pays into the trust with either money or assets; and the beneficiary, the person who will benefit from the trust. There may be more than one person involved at each of three levels.
As a trustee, everything you do must be done in the beneficiary’s best interests. A summary of what you can and can’t do as a trustee will probably be listed in a trust agreement.
In addition, trustees do have a number of responsibilities under Common Law and these are:
- To act in the best interests of all beneficiaries at all times.
- Not to allow their own political, social or moral views to influence their judgement as to what is in the best interests of the beneficiaries.
- To take into account the wishes of the person who established the trust (the settlor).
- To ensure fairness between beneficiaries.
- Not to hoard cash, unless it is required for use by a beneficiary in the very near future.
- To take account of factors that may affect investment performance, such as tax and charges.
For more information, call us on tel: 01892 500600 or click here: https://www.goodmanifa.co.uk/our-services/