FIDUCIARY DUTIES OF TRUSTEES
The Trustees have a fiduciary duty to the Beneficiaries of the Trust. If the Trustee’s breach their fiduciary duty, they will be liable for breach of trust. The fiduciary duty includes the following:
Acting in the best interests of Beneficiaries – the Trustees must always act in the best interests of the Beneficiaries of the Trust. This is their primary fiduciary duty.
Act Prudently – the Trustees must act prudently in their management of the Trust assets. If they do not exercise proper due care and the Trust fund suffers loss, the Trustees will be liable for breach of trust. The courts expect Professional Trustees to exercise high standards of care and skill and failure in this obligation will constitute a breach of trust for which the Trustees will be liable to compensate the Beneficiaries, if a loss results.
Accountability of Trustees:
Trustees may not derive any direct or indirect advantage from a Trust, unless expressly permitted by the Trust Deed. Professional Trustee fees must be authorised by the Trust Deed. The basis for charging fees must be completely transparent and agreed with the Settlor.