Managing trusts

Being a trustee means looking after other people's assets (even though you might be a beneficiary yourself there will be other beneficiaries and you are looking after the trust's assets for them as well). You need to think of caring for the assets in a way that is at least as good as, or better than you would look after your own assets.

Think about this like borrowing a friend's car. You might not keep your own car very tidy nor always check the oil and water as often as you should. But when you are borrowing a friend's car chances are you will take special care of it and give it back tidy and in good condition. You are in a position of trust with the friend's car and you will not want to breach that trust.

Some of the management tasks the trustees must perform are:

• Keeping good records – sale and purchase contracts, investment records, bank statements, gift statements etc.
• Keeping a minute book – to record decisions made (e.g. for distributions to be made to beneficiaries).
• Insuring the trust's assets.
• Taking expert advice – as a trustee you will want to get a valuation before selling a property whereas if the property were your own, you might not bother.

Owning assets as trustee puts greater onus on you than if you owned them just for yourself. Many people forming a trust appoint a professional as trustee who will make sure that the management of the trust is properly done.