What Are the Duties of a Will Trustee in the UK?

Many people accept the role of will trustee without fully understanding the level of legal responsibility that it carries, particularly today when compliance and regulatory requirements are more complex than ever before.

If you’ve been asked to act as trustee of a will trust or have already accepted the role and want to learn more about your responsibilities, this guide is for you.

At Hibberts Solicitors, our wills, probate, and trusts solicitors in Cheshire and Shropshire have helped countless families to set up wills and trusts to protect their assets and provide for their beneficiaries both now and in the future. Whether you need help with inheritance tax planning or support with fulfilling your duties as a trustee of a will trust, we are here to help.

In this article, we answer the question ‘what does a will trustee do?’, exploring the duties of a will trustee and explaining when trustees should seek professional legal advice.

How is a will trust created?

Setting up a trust within a will is a smart way of ensuring that assets are protected and managed according to the testator’s (the person making the will) wishes after their death.

A will trust is a type of trust that is created within a will and comes into effect when the person who made the will dies. Details about what assets should go into the trust, who the trustees and beneficiaries are, and how and when the assets should be managed and distributed are all set out in the will.

After the person dies, the executors are responsible for administering the estate and transferring the relevant assets into the trust for the trustees to then manage in accordance with the trust deed.

Will trustee vs executor: What’s the difference?

Trustees and executors both play an important role in managing and distributing a deceased person’s assets, but their responsibilities and timelines are quite different.

An executor is appointed in a will to administer the deceased’s estate. Their duties include identifying and valuing assets, paying debts and liabilities, and distributing the estate to beneficiaries. Their role is temporary and ends once the estate has been administered.

In comparison, trustees named in the deceased’s will are appointed to manage assets that are held in a trust.  A trustee’s role is usually ongoing and could last for many years.

If a trust is created by a will, the assets usually pass into the trust as part of the estate administration, meaning that usually, the executor must obtain the Grant of Probate before transferring the assets to the trustees.

However, if assets are held in a lifetime trust (a trust that has ownership of assets while the person is still alive), then they are not usually included in the probate process.

What is the role of a will trustee?

Will trusts are created to hold and manage assets for beneficiaries – often children under 18 years of age and vulnerable individuals. They may also be used as part of a strategy to help minimise inheritance tax liability.

A will trustee is a person appointed to hold and administer the assets held in a trust in accordance with the trust deed or will. Assets held within a will trust can include money, property, land, or business interests.

Trustees are required by law to act in the best interests of the beneficiaries at all times and follow the instructions set out in the trust deed or will.

Are there different types of trustees?

Different types of trustees can be appointed for a will trust, these include:

• Individual lay trustees – often friends or family members.
• Professional trustees – like a solicitor or accountant.

Many people choose to appoint more than one trustee. Having both a professional trustee and a lay trustee can be beneficial as the combination of professional expertise and insight from someone who knew the deceased and their wishes personally can lead to more balanced decision-making.

What are the  duties of a  trustee according to UK law?

The role and responsibilities of a trustee are set out in the Trustee Act 2000. A trustee’s duties are wide-ranging and often go on indefinitely, so it’s not a role to take on lightly.

The key duties of a will trustee are as follows:

Fully understand the terms of the trust: Trustees are responsible for making sure that they fully understand the terms and conditions of the trust and the rules set out in the trust deed to allow them to carry out their role effectively and in accordance with the law.

Always act impartially and in the best interests of the beneficiaries: Trustees should always balance the interests of all beneficiaries fairly, without favouring one over the other. They have a duty of care to act in the best interests of the beneficiaries at all times and avoid any conflict of interest.

Trust administration and asset distribution: It is down to the Trustees to make important decisions regarding the trust, including how assets should be acquired, invested, and distributed. These decisions should be made in line with the will and the trust’s goals and with reasonable care and diligence.

Provide information about the trust to beneficiaries: The trustee should keep beneficiaries informed about the trust’s administration, providing them with information and documentation about any changes to the trust.

Always follow the terms set out in the trust deed: All decisions regarding the trust must be made in accordance with the rules set out in the trust deed.

Keep accounts, retain records, and pay tax: Trustees should keep detailed accounts and records of all trust activity, including investments and distributions. They must also handle all relevant tax matters, including registering the trust with HMRC, filing tax returns, and paying any tax owed.

What are trustees not allowed to do?

Trustees have a duty of care and must act and make decisions only in accordance with the terms of the trust deed or will. All decisions regarding the trust must be impartial and made with the beneficiaries’ best interests at heart.

Trustees could face serious consequences if they are found guilty of any of the following:

• Using trust assets for personal profit.
• Acting where there is a conflict of interest.
• Favouring one beneficiary over another.
• Taking unnecessary risks with assets.

Trustees can be held personally liable if they mismanage trust assets or fail to act in the best interests of the beneficiaries, so it’s important not to take on the role of trustee unless you are confident that you understand what it entails and can fulfil your duty of care.

What are the consequences of getting it wrong as a trustee?

Acting as a trustee is a significant responsibility that holds personal liability risk. If a trustee does not uphold their duties, a beneficiary could bring a breach of trust claim against the trustee, for which the trustee would be personally liable. If the court agrees that there has been a breach of trust, it can order the trustee to personally compensate the trust for any loss suffered.

Trustees can minimise risk by doing the following:

• Making sure they fully understand the rules of the trust and their responsibilities as a trustee from the start.
• Seeking advice from a solicitor who specialises in trusts when making important decisions.
• Keeping detailed accounts and records.
• Taking out trustee indemnity insurance.

Taking proactive steps like these helps trustees to minimise risk and carry out their duties with confidence, knowing that they are covered if they were to make an honest mistake.

When should trustees seek legal advice?

Named trustees who are not legal professionals should consider seeking expert advice at key stages, including:

• Before accepting the role.
• Before making important decisions regarding trust assets.
• If they are unsure about the terms of the trust deed or will.
• If a dispute arises between beneficiaries.
• When handling complex tax or compliance issues.

If you are a trustee, a specialist wills and trusts solicitor can provide support and guidance to help you meet your legal obligations and avoid costly mistakes and personal liability.

Contact Hibberts Solicitors for tailored advice on creating or managing a will trust

Our wills and trusts solicitors in Nantwich are here to provide you with clear and practical support with all aspects of trust creation and administration, including trustee duties, compliance, and probate dispute resolution.

If you need help understanding your role, managing a will trust, or appointing a trustee, contact our team today by calling 01270 624 225 or emailing enquiries@hibberts.com