Trustees

(The weekly series - Pocket Money - where I explain financial basics in fewer than 200 words. Feel free to make suggestions!)

These are people, or companies, legally responsible for looking after assets on behalf of somebody else (the beneficiaries). That could be money, investments, real estate or anything else imaginable!

• They must work according to the trust documents.

• It is a fiduciary relationship (so they are legally obligated to work in the interests of the beneficiary).

• They must avoid conflicts of interest, make prudent financial decisions and keep accurate records. 

Some common trustee positions are: 

• Pension trustees who manage workplace pension schemes to ensure members’ interests are protected and money is invested properly. 

• Trust fund trustees manage the money left in a trust, invest responsibly and might be responsible for deciding how and when beneficiaries receive money. 

• Charity trustees make sure the funds are managed responsibly and that the charities follow their charitable purposes. Sometimes called ‘board members’ or ‘governors’.

Love Eleanor. xxx