TRUSTEES GET A WAKE-UP CALL

 

 

A recent article by Rob Stock, money editor of the Sunday Star Times, outlined a list that he called ‘The Butler List’ which comes from a book titled ‘Equity and Trusts in New Zealand’ by Andrew Butler. 

 

In the book Butler lists common rules that trustees must follow and it’s just a good reminder - as Rob Stock calls it ‘a good wakeup call’ - for trustees to run through the list to ensure that their trust is not considered a sham trust. 

 

 

 

 

 

The Butler list defines trustees responsibilities as:

 

Kniow and understand the trust deed

 

Adhere to the trust deed

 

Maintain impartiality between beneficiaries

 

Act in the best interests of the beneficiaries

 

Not profit from trusteeship

 

Avoid conflicts of interest

 

Invest the trust funds (obviously where applicable)

 

Not delegate their duties to others

 

Be active

 

Act unamimously

 

Pay correct beneficiaries

 

Kepp proper accounts and provide information as required