Specific trust management duties include: 

Managing the trust's assets

Trustees are responsible for holding and managing the trust's assets and property. 

• Investing the trust's assets 
• Insuring the trust's property

Distributing assets to beneficiaries

Trustees may distribute income and possibly capital according to the wishes of the settlor(s), and after considering the needs of the beneficiaries. Where a house is owned by a trust, the trustees may allow a beneficiary to live there, normally in exchange for a rent payment but this could also be by agreement that they pay rates, insurance and maintenance, or whatever is agreed and is allowed by the trust deed.

Trustees distribute assets to the beneficiaries named in the trust. For example, in a life interest trust, trustees must distribute income to the life tenant beneficiaries while preserving the capital for remaindermen.

Remaindermen are the individuals or entities who are entitled to receive the remaining assets of a trust after the termination of a life interest or other temporary interests. In simpler terms, they are the beneficiaries who will inherit the trust property once the current beneficiary's rights (such as those of a life tenant) end, usually upon their death.  They are the future beneficiaries of a trust, waiting to receive their share of the trust property after the current beneficiary's interest ends.

Example:  In a trust where a parent leaves assets to their spouse for their lifetime (the life tenant), the children of the parent would be the remaindermen. They will inherit the trust assets after the spouse passes away.

• Acting in the beneficiaries' best interest

Trustees must act honestly and in good faith, and act for the benefit of the beneficiaries. 

• Following the trust deed

Trustees must know the terms of the trust, as recorded in the trust deed, and act according to those terms. 

• Avoiding conflicts of interest

Trustees must avoid conflicts of interest and not profit from their acts as trustee. 

• Acting impartially

Trustees must act impartially and consider how they use their power. 

• Acting unanimously

Trustees must act unanimously unless the trust deed says otherwise. 

• Providing information to beneficiaries

Under the Trusts Act 2019, trustees have mandatory information obligations to beneficiaries. These obligations are structured around presumptions, meaning the law starts with the assumption that information will be provided, unless the trustees can show a good reason (based on specific factors) not to.

These obligations include:

Presumption to Provide ‘Basic Trust Information’ (Section 51):

• Trustees must actively and at reasonable intervals (e.g., at least annually) consider providing this information to every beneficiary.
• The ‘presumption’ here means the starting point is that this information should be given, and trustees need a valid reason to withhold it.
• This ‘basic trust information’ includes:
  • The fact that a person is a beneficiary of the trust.
  • The name and contact details of the current trustee(s).
  • Details of any changes in trustees (appointment, removal, retirement) as they occur.
  • The beneficiary's right to request a copy of the terms of the trust (the trust deed) or other trust information.
    
    

Presumption to Provide ‘Trust Information’ Upon Request (Section 52):

• If a beneficiary requests ‘trust information,’ trustees must provide it within a reasonable period.
• The ‘presumption’ in this case means if a beneficiary asks for specific information, the trustees are generally expected to provide it, and they would need a valid reason to refuse.
• ‘Trust information’ is broader and includes any information regarding:
  • The terms of the trust.
  • The administration of the trust.
  • The trust assets.
• This information must be reasonably necessary for the beneficiary to have to enable the trust to be enforced.
• Crucially, this does not include the trustees' reasons for their decisions.

Important Note on Presumptions: While there are strong presumptions to disclose, trustees can decide to withhold some or all of this information from particular beneficiaries after considering a specific set of factors (outlined in Section 53 of the Act). However, withholding basic information from all beneficiaries is only permitted in exceptional circumstances and for a limited time (generally no more than 12 months without High Court direction). The burden is on the trustee to justify withholding the information.