A will trustee is appointed to manage a trust created through a person’s will, ensuring it is handled as outlined. Trustees can also be beneficiaries, often within families, and may also act as the estate’s executor.
Including a trust in a will is a way to prepare for the future and protect your assets on behalf of your loved ones. In this article, we explore the role of a trustee, their key responsibilities, and the situations where engaging a professional trustee may be beneficial.
Purpose of a Will Trustee
A trustee plays a vital role in the administration and distribution of a trust. The settlor (the person who creates the trust) can use this to protect beneficiaries who are minors or vulnerable individuals. A trust can shield your assets from potential future care costs and tax implications, such as Inheritance Tax.
A trustee must ensure the terms of the trust and the wishes of the settlor are adhered to. They become responsible for receiving inheritance from the deceased person’s estate on behalf of the trust. The trustee then manages and distributes assets to beneficiaries per the trust's instructions.
Will Trustee Responsibilities and Duties
Under the Trustee Act 2000, trustees should "exercise such care and skill as is reasonable in the circumstances" towards beneficiaries. They must balance each of their interests with a statutory duty of care.
This could mean safeguarding assets for minors and supporting vulnerable adults. Depending on the type of trust, they may be tasked with deciding when and how assets are allocated.
Adhering to the terms of the trust
Preserving and growing the trust's value where applicable
Overseeing property until a minor is the age of 18
Managing assets according to the trust’s terms
Distributing inheritance to beneficiaries
Allocating funds for a beneficiary's education and healthcare.
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Key Differences Between an Executor and Trustee
A trustee differs from an executor of a will, who is a named individual responsible for the administration estate per the will.
Executors handle estate administration throughout the probate process. Their role is to carry out the deceased’s wishes, including funeral arrangements. They must ensure any debts and taxes such as Inheritance Tax (IHT) are paid. They will apply for probate and their duties will only end once the probate process is complete.
Trustees are responsible for the ongoing management of trusts and the distribution of the deceased’s assets. Much of their role comes into play once probate has been granted. They must act in the best interest of the trust and the wishes left in the will.
Can One Person Serve Both Roles?
Yes, it is common for someone to serve as both trustee and executor. However, it’s essential for them to understand the distinct responsibilities each role entails. Practical factors should be taken into account, such as the time and effort required to manage both roles effectively.
Who Should You Choose as a Trustee?
The role of a trustee is vital to the trust and as such, you must nominate someone you trust implicitly. This can be a family member, friend or professional but must be aged 18 or over.
The key qualities to look for in an individual include:
Financial acumen
Willingness to act on behalf of the trust
Trustworthiness
Reliability
Accountability
Integrity and an impartial nature
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Choosing Family Members vs. Professionals
While many people use a family member, this increases the potential for conflicts of interest. An option to mitigate this is to appoint multiple trustees or neutral third parties, such as a solicitor.
A professional trustee will have legal knowledge and a deeper understanding of the role. This can give you peace of mind that your loved ones will benefit from the trust as you intended. The drawback is that this will come at a cost. Additionally, some individuals may be more comfortable with someone they know and trust in the role.
You should discuss the role and responsibilities with the person or people you want to appoint beforehand. This allows them to learn more about what is expected of them or to decline the role.
Key Takeaways
Will trustees play an important role in protecting and distributing your legacy. Their role differs from that of an executor, with their duties coming at the end of the probate process when assets are distributed.
When it comes to trusts, hiring a legal professional for personalised advice is highly recommended. They can guide you through the process, relieving some of the stress related to will writing and estate planning.
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Finding a Professional Will Writer
A will writer or solicitor can provide reassurance that your assets are protected for loved ones and future beneficiaries. During what can be a difficult or stressful time, they will explain any legal jargon and advise you on what trust is best for your needs.
At Compare My Move, we can match you with up to 6 will writers on our partner network. They work with the utmost sensitivity, ensuring the process is as seamless as possible.
We have a strict verification process in place and our network of partners is regulated by either:
Solicitors Regulation Authority (SRA)
Council for Licensed Conveyancers (CLC)
Law Society of Scotland (LSS)
Law Society of Northern Ireland (LSNI)
Chartered Institute of Legal Executives (CILEX)
The Institute of Chartered Accountants (ICAEW)
Institute of Professional Will Writers (IPW)
The Society of Will Writers (SWW)
