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Understanding trusts and trustee investment duties

Session: 3 June 2021    

With more and more people using trusts for lifetime gifting or creating a trust in their will, advising trustees is a key area of financial planning.  There may be some similarities with advising individuals but giving advice to trustees is a very different animal. 

This session should help you gain a better understanding of:

  • How to identify different types of trust and trustee investment powers
  • Trustees investment responsibilities
  • The income tax and Capital Gains treatment of trusts
  • Suitability issues when matching investments to different trusts
  • Trustee considerations with regard to ESG and multi asset funds.

Presenters – Graeme Robb – Senior Technical Manager

                         Cat McInally – Business Development Manager 

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1.       Trustees almost certainly have:

a.       Restrictive investment powers

b.      Wide investment powers

c.       Investment powers limited to UK assets

d.      No need to invest the trust fund

     

2.       When investing, trustees:

a.       Must always take proper advice

b.      Cannot spend money on taking advice

c.       Are required to take proper advice unless it’s unnecessary or inappropriate

d.      Can only take advice from a solicitor or accountant

 

3.       If trustees are required to pay income to A for life and thereafter the capital passes to B&C, then this is:

a.       A Bare Trust

b.      An interest in possession trust

c.       A discretionary trust

d.      A type of trust that no longer exists

 

4.       Which of the following may be a benefit of multi asset investing?

a.       Diversification

b.      Higher return

c.       Lower risk than cash

d.       Less chance of negative return 

To claim your CPD certificate, click here.

 

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.