Trustees

Question 1

Duties of trustees

Answer 1

• hold title documents to any trust documents
• to act in the best interests of the beneficiaries
• to exercise care in management of the trust
• to invest in accordance with the trust deed and trustee act 2000
• invest all cash unless it is to be paid out
• take into account the tax position of the trust and its beneficiaries
• keep proper accounts and produce them to the beneficiaries if needed

Question 2

Duty of care regarding the investments held within the trust

Answer 2

• due diligence
• allowable investments
• regularly reviewed
• take advice
• suitable

DARTS

Question 3

Investment power of trustees

Answer 3

• power to invest as outright owner - though can be restricted by trust deed
• must consider the suitability of the investment - and need for diversification
• keep investments under review - and vary them if appropriate
• must obtain and co side proper advice - unless considered unnecessary or inappropriate