Trust is analysed as legal entity which is created by party through which the second party holds the right to manage the trustees assets or property for the important benefit of the third party. Trustees is considered as legal term which implies to anyone in position of trust and a member of voluntary or owns property, authority and responsibility for managing operations as well as decision of trust (Chiu and et.al., 2012). In present scenario, core duties which are placed on trustees within a trust are discussed along with the importance and usefulness. Different provisions of amount paid for charity have been discussed in this report. These important provisions will provide understand about the concept of charities and Gift Aid.
1. Core duties placed on trustees under a trust and evaluation of importance and usefulness.
A trustee has been analysed as an entity or individual which is formally appointed for management of assets of a particular or voluntary business enterprise for the benefit of its beneficiaries in accordance with the terms of trust. In this context, there are fiduciary duties which are provided to trustees towards the beneficiaries. Further, these essential duties have been set out in the trust deeds and important statement provided statutory legislations. Duties are powers of trustees have been listed according to the proper law through which the trust is governed (Bock and et.al, 2012). In addition to this, trustee always have some fiduciary duties as well as obligations. This actual means that the trustees are required to act in the good faith in the interest of beneficiaries rather than acting for the collateral purpose. Some core duties are mentioned above:
Duty to the terms: Every trustee is responsible to know and adhered the terms and conditions of the trust which are formulated for smooth regulation of operations. These important rules and regulation are mainly described in the trust deeds (Hoehle, Huff and Goode, 2012). Adherence to the terms and conditions is important for trustees to carry out smooth operations and increasing image of trust in country. Usefulness of this adherence and having knowledge about the terms will also enable trustee in understanding their discretions and power as well as rights which are available to them within a trust.
Duty to act unanimously: In case of private trust, it is the general rule is that where there is more than one trustee they will have to exercise their functions, act unanimously. It is also identified that majority of trustees does rule against the minorities. Moreover, the underlying principle which is requiring the unanimity always seems to be mediator in appointing a number of trustees in order to execute the trust set by trustees. This duty is important for managing operations of trust and resolving critical situations in appropriate manner.
Duty to exercise appropriate care and skill: Trustees are expected to reach at certain level and standards which helps the trust in gaining funds. It will not provide benefit to the incompetent trustee who is responsible for loss to trust fund or beneficiaries by arguing that duties are performed honestly but results are in losses (Joubert and Van Belle, 2013). In management, when trustee fails to apply or exercise required competency and skill then it will consider as breach of trust and will be liable for consequences of that breach. It is important for trustees to exercise their skills as it helps in accomplishment of objective of trust and useful for completion of task in appropriate manner.
Duty of loyalty: It is the most important fact that trustees have major fiduciary duties towards the beneficiaries or public. They must control and manage the trust solely within the interest of trust beneficiaries and they must not take in any interest in the conflict with the beneficiaries. It is also important that they must benefits themselves from their roles as trustees other than the fees that usually receives from their trusteeship. It is considered as important for avoiding conflicts between beneficiaries and trustee by increasing their loyalty towards each other. Loyalty towards beneficiaries is useful for motivating them and also helps in providing care facilities to needy person.
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Duty to manage the trust appropriately: Another important responsibility of trustee is controlling and managing the trust efficiently. For this, they need to be familiar with the terms and conditions of trust, assets and liabilities, situations or circumstance of people or beneficiaries and the purpose of trust. Effective management systems are required to be in place as it helps trustees to ensure that appropriate decisions have been made in timely and appropriate manner. It has been done by considering the terms of trust and important interests of trustees (Pearson, 2013). Managing trust is considered as important for analysing the applicability of organisation to deal with different alternative at workplace.
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