At Parker Kelly we can help private and professional trustees ensure they are acting in the best interest of the beneficiaries of a trust and adhering to the Trustee Act 2000 and the new trust registration service.
As a Regulated Independent Financial Adviser we are qualified to give advice on any current or proposed investments held in a trust. We can advise on their suitability and draft an Investment Policy Statement to ensure the investment strategy stays within the agreed parameters.
Under the Trustee Act 2000 the trustees have a ‘duty of care’ and they must exercise such care and skill as is reasonable in the circumstances, having regard in particular:
a.) To any special knowledge or experience that they have or hold themselves out as having, and
b.) If they act as trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession.
The duty of care for a trustee extends to a general power of investment (Schedule 3 of the Trustee Act 2000), and a trustee may make any kind of investment that they could make if they were absolutely entitled to the assets of the trust.
Before exercising any power of investment, a trustee must (unless the exception applies*) obtain and consider proper advice about the way in which, having regard to the standard investment criteria, the power should be exercised.
* The exception is that a trustee need not obtain such advice if they reasonably conclude that in all the circumstances it is unnecessary or inappropriate to do so.
Proper advice is the advice of a person who is reasonably believed by the trustee to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment.