Trustees
If your Will contains a trust then Trustees need to be appointed
to manage them.
They will assume control of any property or assets and manage
them according to the Will so that they pass on the named
beneficiares. You must name at least one Trustee, but it is
recommended to nominate a couple of substitute Trustees
if the orginal cannot act for one reason or another. It is vital to
choose somebody sufficiently responsible who is able to deal with
financial matters and negotiate with your family and friends. Those
named as Executors can also be
appointed as Trustees.
You should think very carefully about
the choice of Trustee and any potential replacements, powers to
give to the Trustees and the duties that are going to be imposed on
them.
The law gives specific powers to
Trustees, allowing them to carry out their duties under the Will.
These powers include:
-
The Power of
Advancement - allows Trustees to pay capital to a
beneficiary who is a minor (or use it for the benefit of the minor)
and has not reached the age at which they are entitled to
claim the benefits of the trust. If it is to be used for the
benefit of the minor before they reach the desired age, inital
payment will be limited to half of the beneficiary's share;
-
The Power of
Appropriation - permits Trustees to give the beneficiaries
shares or property in order to satisfy a legacy in a Will or
bequest without selling them and handing over cash;
-
The Power to Run the
Testator's Business - a Trustee or Executor has the power
to run the business of the Testator for up to a year after the
Testator's death, whilst trying to sell it;
-
The Power of Trustees to
Charge - Trust corporations or professional Trustees such
as solicitors can now charge for their services with the permission
of the Executors. Non-professional Trustees will not be able to
charge for the work done but may be able to recover reasonble
expenses;
-
The Power to
Delegate - A Trustee may delegate their administrative
powers but not their powers of distribution;
-
Insurance - The
trust property may be insured by the Trustee;
-
Investment - A
Trustee has a duty to obtain and consider proper investment advice
and to review their investments each year.
Any other powers you wish to delegate
to your appointed Trustees should be set out in your Will.