If you think that the new Trusts Act that came into effect on 30 January 2021 has nothing to do with you, think again. What if you happened to be the beneficiary of a trust without knowing it? Or what if you were eligible to inherit a small (or large) fortune without realising it? These are some of the scenarios the new law aims to resolve.

Previously, it wasn't clear what trust information should be disclosed to beneficiaries. The new law clarifies that and means that it is more important than ever for trustees and beneficiaries to know their obligations and responsibilities under trust law. If that sounds daunting, this practical checklist will help you figure out what you need to do to comply with the new Trusts Act.

Trustee responsibilities

Trustees must keep the interests of beneficiaries at the heart of every decision they make and generally at all times. The new legislation records compulsory duties for trustees, which cannot be changed, and they include:

• A trustee must know the terms of the trust.
• A trustee must act in accordance with the terms of the trust.
• A trustee must act honestly and in good faith.
• A trustee must deal with the trust property for the benefit of the beneficiaries.
• A trustee must exercise the trustee’s powers for a proper purpose.

Read more here.