A Trustee’s duties include:

  1. Efficient Management – the requirement to regularly take stock of trust assets and liabilities, setting up structures for the administration and management of the trust and keeping abreast of trust issues.
  2. Keeping full and candid accounts keeping appropriate and adequate accounting records and preparing financial statements in respect of appropriate accounting periods. Trust accounts kept must be proper, faithful and accurate.
  3. Objectivity / Impartialityacting in the best interests of all the beneficiaries, present and future. Trustees must act impartially in their decision making and at all times protect the interests of the beneficiaries.
  4. The duty to considerconsidering whether or not and in which ways trustees should exercise their powers and discretions having regard to the terms of the trust and the interests of the beneficiaries.

A trustee must take all precautions which would normally be taken by an ordinary prudent person managing the affairs of others.

In addition to these requirements, if a trustee is a professional person (such as a lawyer or an accountant), when investing trust funds, for  example, a professional trustee must exercise the care, diligence and skill that a prudent person engaged in his or her line of business would exercise in managing the affairs of others.