Trustees’ Duties

Posted by:

The duties of trustees of a charitable trust are contained in the trust deed, Trustees Act 1956, Charitable Trusts Act 1957 and Charities Act 2005.  The duties continue until the trustee resigns, although in certain circumstances they can continue after resignation.

The primary duties of a trustee are to:

  • comply with the terms of the trust deed that created the trust;
  • act honestly and loyally; and
  • act in the best interests of the trust.

Additionally, all trustees have an obligation to:

  • treat the trust’s potential beneficiaries ...
Continue Reading →
1

Trustee Liability – Charitable Trusts

Posted by:

The Trustees of the board of an incorporated charitable trust are generally not personally liable to the creditors of the trust.

Charitable trusts can be incorporated under the Charitable Trusts Act 1956.  An incorporated charitable trust is a separate legal entity and is liable for the obligations of the trust.  Unless the trustees expressly undertake personal liability the trustees of the trust should not be personally liable to the creditors of the trust.

The protection gained by trustees once they incorporate the ...

Continue Reading →
0

No gift duty is payable on gifts to charities

Posted by:

Generally if you give someone a substantial gift you will have to pay gift duty.  However, if you make a gift to a charity you do not have to pay gift duty.

For example, a society (XYZ Society Incorporated) can transfer land to a charity (XYZ Trust) for free without paying gift duty. The society could then lease the land back from the charity.  Doing this adds an extra barrier of protection for the assets.  Call me on 09 470 2445 ...

Continue Reading →
0