These are very challenging times for trustees. As a Trustee's duties and legal responsibilities increase, so the scope, range and compliance of investments widens and taxation grows more complex. The list of questions a Trustee must comply with grows continually.
• Which of the many investments and type are suitable?
• Are all portfolio choices acceptable?
• What are the tax issues?
• Are all records up to date?
• Is there any risk of litigation?
• Is the correct advice being provided and sought?
• Have investments been reviewed and how often?
• Are all decisions impartial?
• Are all beneficiaries being fairly treated?
As the range and tax complexity of investment choices and compliance grows, so does the possibility of certain decisions of Trustees being questioned. If a breach of trust is proved, individual Trustees can be personally liable for losses!
Now more than ever the Trustee should seek impartial advice
- and it is now a legal requirement under the Trustee Act that
they do this when making or reviewing investments.
With regards to Investments, the Trustee must exercise "reasonable
skill and care" and from time to time to diversify and
review the trust's holdings. The Trustee should take advice
from a "source qualified to give it by ability in and
practical experience of financial and other matters".
They must take due account of taxation in choosing investments
and be impartial in any assessments or alternative investment
options, and make the appropriate choices and to keep written
records and documentation justifying investment choices made.
With years of experience in working in the employee benefits
and financial service corporate investment market, Regent is
well placed to help Trustees through the myriad of investment
issues.
For help on Trustee Investments please contact us on 0845 880 0227 or complete the Enquiry Form.