In her column on trusts in Personal Finance, Phia van der Spuy looks at the case in which a family member acts as a trustee of a family trust.
She points out that all trustees are by law required to act with the same degree of care, diligence and skill; family trustees are often not aware that they may be held personally liable for wrongdoing by the board of trustees; independent trustees generally take out professional indemnity insurance which covers them but which may leave family trustees without such insurance exposed.
In short, being a trustee is a highly responsible role.
Read the article here.
Phia is a CA with a Masters degree in tax, an FPSA®, a Chartered Tax Adviser, a Trust & Estate Practitioner and the founder of Trusteeze, the provider of a digital trust solution.