Being a trustee is a big responsibility and takes some time. But you don’t need to shoulder the burden alone.

Are you a trustee of a trust (sometimes known as a settlement)? Are you unsure about your duties and responsibilities? Do you worry that you aren’t doing everything you should be doing?

Would you welcome a professional review to reassure you that you’re doing everything correctly? Or gently point you in the right direction, if there are things amiss?

Your responsibilities as a trustee

As a trustee you have a duty to administer the trust according to the law and a failure to do this could result in you finding yourself liable to the beneficiaries of the trust. Happily, trustees are encouraged to take expert financial or legal advice as and when required.

What are trusts?

Some of the most common types of trust are:

• created by a will
• lifetime settlements for inheritance tax planning, or asset protection
• trusts linked to insurance policies.

Here are some of the most common questions, trustees ask us:

• Why do we have this trust?
• What are my responsibilities as a trustee?
• Can I terminate or close the trust and if so, what do I need to do?
• Should I make payments out of the trust and how do I do that?
• Should I invest the trust fund?
• Do I need to register the trust with HMRC?
• Do I need to keep accounts and submit a trust tax return?
• What taxes do I need to pay? Income tax, CGT, IHT?
• We are selling a house in a trust. What do I need to do in the trust?
• One of the beneficiaries has had children. Does this affect the trust?
• All the beneficiaries have passed away. Do we close the trust? And where does any residual money go?
• One of the trustees wants to stop being a trustee. What needs to be done?
• The trustees disagree about what to do? How do we move forward?
• One of the beneficiaries wants to be a trustee. Is that possible?
• A family member wants to add money to the trust? How can we make this happen?
• What information should I be sharing with the beneficiaries?
• I look after multiple trusts for the same person. Can these trusts be merged?
• I am missing my trust deed. What do I do?
• How are trusts handled during probate?
• Can I get sued as a trustee?

Ask the experts

At AWB Charlesworth Solicitors we specialise in trust administration and taxation. Mark Shaw and Jenny Barron, are Society of Trust and Estate Practitioners (STEP)-qualified; in fact Mark has received a worldwide excellence award from STEP. We are supported by our legal accountant, Sally Houghton whose accounting background and legal experience combine to offer the complete knowledge necessary for all trust enquiries, large or small. Sally regularly undertakes tax returns for trusts on behalf of trustees.

We offer a fixed price Trust Review Service. For £300 (plus Vat) we will thoroughly review the trust, arrange a meeting to discuss and create a summary of our recommendations.

For peace of mind on all issues trust-related, contact Sally, on 01535 613662 or by email at sally.houghton@awbclaw.co.uk

21 August 2025

Further reading:

To Trust or not to Trust

Are you a Trustee of a Trust?

Gov UK: Trusts and Taxes