Why are trustees important and what do they do?
Trustees have a great deal of responsibility when dealing with trust property. A trustee has a range duties which includes safeguarding trust assets by checking the terms of the trust, collecting money due to the trust or estate (even if this means enforcing any loans due to the trust), investing the trust fund in accordance with the trust deed and distributing the assets.
What happens if the trustee makes an overpayment of income to a beneficiary?
The trustee may correct this mistake by adjusting future payments or if the trustee has made the payment to the wrong recipient then he may attempt to recover this payment from that person.
Are beneficiaries under a trust fund entitled to ask questions of the trustees?
Yes, and the trustees must give the beneficiaries “reasonable” information. Basically a trustee must keep all trust documents, including accounts, title deeds, share certificates and investments documents and make these available so that beneficiaries can have sight of them.. Essentially these documents are the property of the beneficiaries.
What does a trustee do if trust property is subject to a life interest?
This will usually mean that property is held in trust for a life tenant to obtain the income from that property during their lifetime and on their death the property is to pass to another named beneficiary. The trustee must act with the standard duty of care expected of a trustee and make all prudent investments, taking into account the needs of the life tenant (who will receive the income from the investment during their lifetime) and the needs of those entitled to the capital once the life interest ends. Often the trust deed will include details of what type of investments are to be made by the trustees.
Is a trustee able to sell trust property?
Yes. A trustee has the powers of an absolute owner and can even postpone a sale. However, in order to sell any property there must be at least two trustees able to sign the contract for sale.
What happens if a trustee breaches the terms of the trust?
A trustee will be personally liable if he does an act which he should not do or fails do something which he should have done concerning the administration of the trust. This will be discussed further in a future article.
Does the JCSD Trustee Services offer Trust Services for individuals i.e Personal Trustee?
Not currently. The type of Trustee Services currently offered are for Corporate Entities, know as corporate Trust. Some of the services offered are as follows: -Fund Administrator, (Unit Trusts and Collective Investment Schemes) -Collecting Agency -Collateral Agency -Enforcement Agency -Registrar and Paying Agency -Tax Returns for clients -Audit Confirmation for clients
What is the JCSDTS’ Client Profile?
The Trustee Services has targeted various customers which include:-
- Listed Companies
- Institutional Investors
- Investing Public
- Financial Institutions
What are the Services Offered by the JCSDTS
Services offered are:
- Administration of Funds under Trust
- Monitoring of Invested Trust Assets
- Maintenance of Accounting Records in respect of Funds
- Collecting and recording of Income on Trust Assets
- Filing of Income Tax Returns
- Safekeeping facilities for Securities
- Provide monthly reports on Trust Activities
- Collateral Agent and Collecting Agent for Guaranteed Note and Bonds
We are not however limited by the abovementioned services as our powers and responsibilities are based on the terms of our Trust Deed agreed with the client.