Trustees should always act in good faith and in the best interest of the beneficiaries. One of the main duties of the trustees is to manage the trust efficiently which requires effective communication between all the related parties.
An effective management system should be in place to ensure that the correct decision is made by taking into account the interest of the beneficiaries.
The key elements trustees should always keep in mind:
- To monitor and review the trust bank account, investments report and financial statements;
- Keep proper records of all the accounts;
- Consider request from the beneficiaries;
- Always keep up to date circumstances of the beneficiaries;
- Effective communication with all parties who are involved with the trust matters; and
- Establish procedures for trustee meetings.
It is important to have a trustee meeting at least once a year.
During the meeting, it is important to take proper minutes of the trustee meeting. The purpose of minutes is to provide an accurate and objective account of the proceedings of the meeting, and more particularly to record the decisions made at the meeting. The minutes of a meeting is defined as the official, permanent record in writing, expressed in formal terms, of the business transacted at a meeting.