Trustee Duties and Responsibilities

What does a trustee actually do?

A trustee legally owns the trust assets and looks after them for the beneficiaries, who hold the benefit. In practice that means safeguarding the assets, making decisions the deed allows, keeping accounts, dealing with any tax, and distributing income or capital as the trust directs. Trustees must act together, act honestly, and put the beneficiaries first at all times.

The statutory duty of care

When exercising many of their powers, trustees must meet a legal standard of care. Under section 1 of the Trustee Act 2000 a trustee must exercise "such care and skill as is reasonable in the circumstances", and a higher standard applies to anyone with special knowledge or who acts as a trustee in the course of a business or profession (legislation.gov.uk, Trustee Act 2000 s.1, as at July 2026, subject to change).

Fiduciary duties

A trustee is a fiduciary, which means the law holds them to a strict standard of loyalty. They must act in good faith and in the best interests of the beneficiaries, avoid conflicts between their own interests and the trust, and not profit personally from their position unless the deed or the law allows it. They must also act impartially between different beneficiaries where the trust has more than one.

These duties are separate from the tax rules but sit alongside them. Trustees must keep the trust's affairs in order, which includes keeping proper records to complete tax returns, such as bank statements (gov.uk, trustees' tax responsibilities, as at July 2026, subject to change).

For how trusts are created and used, see our guide on how to set up a trust.

The main duties of a trustee

Trustee duties come from three places: the trust deed, statute such as the Trustee Act 2000, and the wider body of trust law built up by the courts. The exact list depends on the trust, but most trustees share a common set of responsibilities, which the table below summarises. This is general information, not a checklist for any particular trust.

Duty	What it means in practice
Follow the trust deed	Read and act within the terms of the trust, and only exercise powers the deed actually gives.
Act with reasonable care and skill	Meet the statutory duty of care when investing, delegating and managing assets (Trustee Act 2000 s.1, as at July 2026, subject to change).
Act in beneficiaries' interests	Put beneficiaries first, act impartially between them, and avoid conflicts of interest.
Keep accounts and records	Maintain proper trust records, including for tax returns (gov.uk, as at July 2026, subject to change).
Deal with tax and registration	Report and pay any tax, and register the trust with HMRC where required (gov.uk, as at July 2026, subject to change).
Act personally and together	Trustees generally make decisions jointly and cannot simply hand the role to someone else, though they may delegate specific tasks properly.

Duty

What it means in practice

Follow the trust deed

Read and act within the terms of the trust, and only exercise powers the deed actually gives.

Act with reasonable care and skill

Meet the statutory duty of care when investing, delegating and managing assets (Trustee Act 2000 s.1, as at July 2026, subject to change).

Act in beneficiaries' interests

Put beneficiaries first, act impartially between them, and avoid conflicts of interest.

Keep accounts and records

Maintain proper trust records, including for tax returns (gov.uk, as at July 2026, subject to change).

Deal with tax and registration

Report and pay any tax, and register the trust with HMRC where required (gov.uk, as at July 2026, subject to change).

Act personally and together

Trustees generally make decisions jointly and cannot simply hand the role to someone else, though they may delegate specific tasks properly.

A worked example (illustration only). Grandparents set up a discretionary trust and appoint two of their adult children as trustees to hold savings and investments for the grandchildren. The trustees must read the deed to see who can benefit and when, invest with reasonable care under the statutory duty of care (Trustee Act 2000 s.1, as at July 2026, subject to change), keep records, and register the trust with HMRC, generally within 90 days of it being created where registration is required, with a penalty of up to £5,000 for failing to do so (gov.uk, register a trust as a trustee, as at July 2026, subject to change). Every trust is different, so this is general information rather than guidance for any real trust.

Tax and registration responsibilities

Trustees carry the trust's tax obligations to HMRC. As a trustee you are responsible for reporting and paying any tax the trust owes, and where there is more than one trustee, one is usually nominated as the principal acting trustee, though all remain accountable (gov.uk, trustees' tax responsibilities, as at July 2026, subject to change).

Register the trust. Most new UK trusts created after 6 October 2020 must be registered with the Trust Registration Service, generally within 90 days, with a penalty of up to £5,000 for failure to register (gov.uk, as at July 2026, subject to change).

File returns and pay tax. Where the trust must complete a Self Assessment return, the usual deadlines are 31 October for paper and 31 January for online filing (gov.uk, as at July 2026, subject to change).

Keep records and inform beneficiaries. Trustees must keep records such as bank statements and can be asked to give beneficiaries a statement of income and tax paid, for example on form R185 (gov.uk, as at July 2026, subject to change).

What happens if a trustee gets it wrong?

A trustee who acts in breach of their duties can be held personally responsible for any loss the trust suffers as a result. That is why the role is taken seriously and why many trustees take professional help with investment, tax and administration. Some trust deeds include clauses that limit a trustee's liability in certain situations, but these do not cover dishonesty, and their effect depends on the wording and the circumstances. Because the consequences can be significant, it can be worth discussing the role with a qualified professional before accepting or acting on it.

Trustee duties in Scotland and Northern Ireland

This guide describes the law of England and Wales. The Trust Registration Service and the tax duties that flow from it apply across the UK, so trustees in Scotland and Northern Ireland face the same registration and tax responsibilities to HMRC (gov.uk, as at July 2026, subject to change). The underlying trust law differs, though. Scotland has its own body of trust law, and Northern Ireland has a separate but broadly similar system to England and Wales. Where a trust touches more than one UK nation, it can be worth taking advice in each.

Frequently asked questions

What are the main duties of a trustee?

A trustee must follow the trust deed, act with reasonable care and skill, act honestly and in the beneficiaries' best interests, keep proper records and accounts, and deal with any tax and registration. Under the Trustee Act 2000 the statutory standard is "such care and skill as is reasonable in the circumstances" (legislation.gov.uk, as at July 2026, subject to change). The exact duties depend on the trust.

Can a trustee be paid?

It depends on the trust. A trustee generally cannot profit personally from the role unless the trust deed allows payment or the law provides for it, so professional trustees are usually paid under a charging clause while family trustees often act unpaid. Because a fiduciary must avoid conflicts of interest, many people set out any fees clearly in the deed. It can be worth taking advice on the wording.

Do trustees have to register the trust?

Often, yes. Most UK express trusts, and any trust liable to UK tax, must be registered with HMRC's Trust Registration Service. For most new trusts created after 6 October 2020 registration is generally required within 90 days, and a penalty of up to £5,000 can apply for failing to register (gov.uk, as at July 2026, subject to change). Some trusts are excluded.

Is a trustee personally liable?

A trustee who breaches their duties can be held personally responsible for loss the trust suffers as a result. Some deeds limit liability in certain circumstances, but such clauses do not cover dishonesty and their effect depends on the wording. Acting with reasonable care, following the deed and keeping good records all reduce the risk. Where the stakes are high, many trustees take professional advice before acting.

Can a trustee also be a beneficiary?

Yes, this is common, for example where a spouse is both a trustee and a beneficiary. It is allowed, but it creates a potential conflict of interest, so the trustee must still act impartially and in the interests of all the beneficiaries, not just themselves. Many trusts appoint more than one trustee partly to manage this, and it can be worth discussing the set-up with a qualified professional.

How many trustees can a trust have?

A trust can be run by a single trustee, though many are set up with two or more so decisions are shared and cover is in place if one dies or steps down. Where a trust holds land, having at least two trustees, or a trust corporation, is often needed to give a valid receipt for the sale proceeds. The trust deed and the circumstances usually shape the number chosen.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.