What to do if you’ve been appointed as a Trustee

Have you been named as a trustee? It’s completely normal to have questions about what the role involves. Our experienced trusts solicitors have answered some of the most common questions to help you understand your responsibilities and protect yourself in the role.

Do I have to accept the Role of Trustee?

No. You cannot be forced to accept the position of trustee. If you do not wish to act, you can simply decline the appointment.

Can I step down as a Trustee later?

Yes. You can resign from the role at any time. However, in the case of an ongoing trust, you may be expected to help with the appointment of a replacement trustee.

Are Trustees paid?

Generally, no. Lay (non-professional) trustees are not usually paid for their time. However, professional trustees—such as solicitors or accountants—may be entitled to remuneration, either under the trust deed or under general legal principles.

Can Trustees claim expenses?

Yes. Trustees can recover reasonable expenses that are properly incurred in the course of carrying out their duties. These expenses are paid out of the trust fund.

Am I personally liable as a Trustee?

Potentially, yes. Trustees can be held personally liable for a “breach of trust”. However, trustees are generally entitled to be indemnified from the trust fund—provided the trust has sufficient assets and the trustee acted properly.

To protect yourself:

• Always act in the best interests of the beneficiaries;

• Take reasonable steps to safeguard trust assets;

• Seek professional advice when necessary.

It’s important to act fairly and impartially, even when this may be difficult. Your relationship with the settlor and your understanding of the beneficiaries are likely reasons you were chosen for this responsibility.

Am I liable for other Trustees’ mistakes?

Not directly. Trustees are not usually liable for the actions of their co-trustees. However, if you fail to prevent a co-trustee from breaching the trust—or turn a blind eye—you could still be held responsible.

Courts can sometimes excuse trustees from liability if they acted honestly, reasonably, and in good faith.

Am I liable for financial losses to the Trust?

Not usually. Most modern trust deeds include a clause stating that trustees are not liable for losses to the trust fund unless those losses result from their own negligence or fraud.

Need advice about being a Trustee?

If you’ve recently been appointed as a trustee and want to understand your duties—or you’re concerned about your responsibilities—our specialist trust solicitors are here to help. Contact us today for clear, practical legal advice tailored to your situation.