Page 27 - Nexia SAB&T Trust Guide 2024

DUTIES, RESPONSIBILITIES AND OBLIGATIONS OF TRUSTEES

The duties of a trustee can be divided into the following categories:

Obligations in relation to the trust deed
Trustee(s) have an obligation to:
■ Lodge the initial trust deed with the Master of the High Court.
■ Pay the Master of the High Court’s fees.
■ Be familiar with the trust instructions including the nature and extent of their
powers and duties.
■ Lodge amendments to the deed with the Master of the High Court.
Obligations in relation to the trustees
Authority to act – a trustee can only act as trustee once authorised to do so in
writing by the Master of the High Court, by way of Letters of Authority.
Notice of address – a trustee must inform the Master of the High Court of his
postal and physical address. The Master must be notified of any change of
address by registered mail within 14 days of the change.
Exercising discretion – a trustee may delegate tasks, but must make decisions
and exercise discretionary powers personally and independently. The trustee
is responsible to the beneficiaries for any appointed agent’s actions. Where
a trustee relies upon a dominant co-trustee and approves of his (wrongful)
conduct, he may be removed from office by a court.
Avoid a conflict of interests – a trustee must act in good faith, and at all times
avoid any conflict of interests between his personal interests and his official
and fiduciary duties to the trust and to the beneficiaries. A trustee may not gain
personally from the trust fund (other than reasonable remuneration).
Declare a personal “interest” – a trustee who in any way acquires an interest
in an agreement or proposed agreement which has been or is to be entered into
with the trust, must immediately declare the nature and extent of this interest in
writing to the other trustees (this includes having any relationship, either by blood
or by marriage with a person who has such an interest).
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