A Trust is created when a Settlor gifts an asset to a trusted person (the Trustee) with instructions (the Trust Deed) for the trustee to manage that asset for the benefit of Beneficiaries.
Trustees can also be beneficiaries, but if they are then they need to remember that they acting in more than one capacity, aka “wearing different hats”.
While it is preferable to have an independent trustee, some people prefer to retain control by acting as trustees of their own trusts.
This is perfectly legal, but it does leave such trustees open to risks. It is important for lay people who act as their own trustees to ensure that they have the right guidance and are acting correctly.
Fiduciary Management provides tools for lay-trustees to stay on the right track. This is a cost effective option for most people.
However, the tools provided do not constitute legal or financial advice and it is recommended that in the event of uncertainty you contact us before taking a decision. We will review your concerns free of charge and provide you with a referral to an appropriate professional.