Trustee's General Functions and Standard of Care

General Functions of a Trustee

• A trustee's role is to preserve and enhance the value of the fund, pay income and capital to entitled beneficiaries, and provide them with information on the trust's management.
• A trustee must ensure that trust property is held by or vested in them, and preserve and enhance its value, as stated in the Trust Act of Belize (S.27(5)).

Standard of Care

• The standard of care for a trustee is that of an "ordinary, prudent man of business" (S.27 Trust Act Belize).
• A trustee must take all precautions that an ordinary prudent man would take in managing similar affairs (Speight v Gaunt).
• A professional corporate trustee is liable for breach of trust if they neglect to exercise the special care and skill they profess to have (Bartlett v Barclay Trust).

Core Obligations

• A trustee has a duty to inquire into the extent and nature of the property and the trusts (Nestlé v NW Bank).
• A trustee must obey directions in the settlement unless the deviation is sanctioned by the court.
• A trustee must act honestly and in good faith for the benefit of the beneficiaries, without necessarily including duties of skill, care, prudence, and diligence (Armitage v Nurse).
• A trustee has a duty to account for their stewardship of the assets under their control.
• A trustee must carry on the business of the trust with the degree of prudence expected of a hypothetically ordinary prudent man of business (Speight v Gaunt).

Duties of a Trustee

• Upon acceptance of the trust, a trustee is bound to inquire about the property and trusts, and review the trust documents and papers (Hallows v Lloyd).
• A trustee must act with due diligence, utmost good faith, and to the best of their skills and abilities (S.27 Trust Act Belize).