What Is a Trustee? UK Guide (2026)
Updated 13 May 2026 • 8 min read
A trustee is a person (or company) who holds and manages assets on behalf of someone else — the beneficiary. Trustees are legally obliged to act in the best interests of beneficiaries and follow the terms of the trust deed. In a will, trustees are most commonly appointed to manage money or property left to minor children or vulnerable adults until they are old enough or able to receive it.
The trust relationship explained
A trust exists when one person (the settlor, or in a will context, the testator) transfers assets to one or more trustees to hold for the benefit of one or more beneficiaries. The trustee owns the assets legally (their name is on the title) but they do not own them beneficially— they cannot use the assets for themselves.
This separation of legal and beneficial ownership is the defining feature of English trust law, developed over centuries in the Court of Chancery. It allows assets to be protected, managed, and distributed in a controlled way that a direct gift to a beneficiary cannot achieve.
Why trusts appear in wills
Wills commonly create trusts in the following situations:
- Minor children: Children under 18 cannot legally own property. A trust holds the assets until the child reaches the specified age (often 18 or 21).
- Vulnerable beneficiaries: Adults with a disability, addiction, or mental health condition who benefit from a protective trust managed by responsible trustees.
- Second marriages: A life interest trust allows the surviving spouse to live in or receive income from the estate, while preserving capital for children from a first marriage.
- IHT planning: Discretionary trusts and nil-rate band trusts are used to reduce the IHT bill on the second death.
The legal framework — Trustee Act 2000
The Trustee Act 2000 (TA 2000) is the primary statute governing trustee powers and duties in England and Wales. Key provisions:
| TA 2000 section | What it covers |
|---|---|
| s1 — duty of care | Trustees must exercise the care and skill of a prudent person of business. Professional trustees are held to a higher standard. |
| s3–7 — investment powers | General power to invest in any asset. Must consider standard investment criteria: diversification and suitability. |
| s11–15 — delegation | Trustees may delegate asset management to an agent (e.g. a fund manager), but must review the arrangement regularly. |
| s29–33 — remuneration | Lay trustees act for free by default. Professional trustees can charge if the trust document authorises it or all beneficiaries consent. |
The earlier Trustee Act 1925 (TA 1925) still applies to trustee appointment, retirement, and removal. The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) governs trusts that hold land.
Trustee duties — what they must do
The core duties of a trustee are:
- Act in good faith — always in the best interests of all beneficiaries, not their own interests.
- Invest prudently — follow the standard investment criteria (suitability and diversification). Take proper investment advice unless the trust is small or the trustees have expertise.
- Act impartially — balance the interests of income beneficiaries (who want high income now) and capital beneficiaries (who want growth for the future).
- Keep accounts — maintain proper records of all transactions and provide accounts to beneficiaries on request.
- Act unanimously — all trustees must agree on decisions unless the trust document allows majority decisions.
- Not profit from the trust — the “no-profit rule” prevents a trustee from benefiting personally from the trust unless the trust document expressly authorises it.
- Act personally — trustees cannot generally sub-delegate their discretionary decision-making (though they can delegate administrative and investment tasks under TA 2000).
What trustees are not allowed to do
- Purchase trust property for themselves (self-dealing rule) without court approval or beneficiary consent.
- Use trust funds to pay their own debts.
- Make investments that are not authorised by the trust document or TA 2000.
- Ignore the interests of any class of beneficiary in favour of another (e.g. always favouring the income beneficiary over the remainder beneficiary).
- Retire and leave fewer than two trustees if land is held in trust (TA 1925 s34).
Trustee personal liability
A trustee who breaches their duties can be personally liable to compensate the trust for any loss. This is called a breach of trust. Liability can arise from:
- Making unauthorised or negligent investments that lose trust money.
- Paying trust assets to the wrong person.
- Failing to invest trust cash (so the trust earns no return).
- Distributing assets before all debts are paid.
The court can reduce or excuse liability under Trustee Act 1925 s61 if the trustee acted honestly and reasonably and it is fair to excuse them. Trustee indemnity insurance is available and costs relatively little — it is worth taking out for any significant trust.
Trustee vs executor — key differences
| Feature | Executor | Trustee |
|---|---|---|
| Purpose | Administer the estate after death | Manage ongoing trust assets |
| Duration | Usually 12–24 months post-death | Can last years or decades |
| Appointed by | The will (or court if no executor) | The will or trust deed |
| Primary law | Administration of Estates Act 1925 | Trustee Act 2000, TA 1925, TOLATA |
| Can be same person? | Yes — very common in family wills | |
Choosing trustees for your will
Appointing the right trustees is as important as choosing the right executor. Consider:
- Capacity and age: A trustee needs mental and physical capacity throughout what could be a long trust. Appointing elderly relatives is risky for long-running trusts (e.g. trusts for young children).
- Financial skill: Trustees are responsible for investments. Choose people with financial common sense, or appoint a professional trustee alongside a family member.
- Impartiality: A trustee who is also a beneficiary can have a conflict of interest. This is often unavoidable in family trusts but should be acknowledged in the trust document.
- Willingness: Unlike executors, trustees may be in post for 18+ years. Ask potential trustees whether they are willing to commit.
- At least two trustees: Always appoint at least two (and ideally a substitute in case one cannot act).
When to use a professional trustee
A trust corporation or professional trustee (solicitor, accountant, bank trust department) is worth considering when:
- The trust holds substantial or complex assets (property portfolios, business interests).
- The trust will run for a very long time (e.g. a trust for a child with a serious disability).
- There is family conflict — an impartial professional prevents disputes.
- All obvious lay trustees have predeceased or lost capacity.
Professional trustees typically charge 0.5–1.5% of trust assets per year, plus an acceptance fee. This cost comes from the trust, not from the beneficiaries’ pockets directly.
Frequently asked questions
What is the difference between a trustee and an executor?
An executor administers your estate after death — gathering assets, paying debts, and distributing to beneficiaries. A trustee manages ongoing trust assets for beneficiaries over a longer period. In a simple will, the executor's job ends once the estate is distributed. In a will that creates a trust (e.g. for minor children), the same people may act as both executor and trustee, but the roles are legally distinct.
What are the main duties of a trustee?
Under the Trustee Act 2000 (and the trust document), a trustee must: act in the best interests of all beneficiaries; invest trust assets prudently (following the standard investment criteria); keep accounts; act impartially between different classes of beneficiaries (e.g. life tenant and remainderman); not profit from the trust; act personally (not delegate decision-making unless authorised); and comply with the terms of the trust deed.
Can a trustee be personally liable?
Yes. A trustee can be personally liable for breach of trust — for example by making improper investments, failing to distribute correctly, or misapplying trust funds. Personal liability means the trustee can be sued and ordered to compensate the trust from their own pocket. Trustees can purchase trustee indemnity insurance to protect against claims, and professional trustees often carry this as standard.
How many trustees do I need in a will?
You can appoint a single trustee for personal trusts (e.g. a trust for an adult beneficiary), but for trusts holding land you need at least two trustees to give a valid receipt for purchase money (Trustee Act 1925 s27). It is common practice to appoint two or three trustees to provide checks and balances. The maximum is four under the Trustee Act 1925 for trusts of land (s34).
Can an executor also be a trustee?
Yes, and this is very common. In most home-made wills, the same two people are appointed as both executors and trustees. They wear the 'executor' hat during the probate and estate administration phase, then assume the 'trustee' hat once any continuing trust (e.g. for a minor child) begins. The shift is automatic; no formal step is required.
When should I use a professional trustee instead of a family member?
Consider a professional trustee (a solicitor, accountant, or trust corporation) when: the trust will hold complex assets (business interests, investment portfolios); the trust is likely to run for many years beyond your death; there is family conflict that makes an impartial trustee preferable; or the trust is for a vulnerable beneficiary who may challenge family trustees. Professional trustees charge fees (typically 0.5–1.5% of trust value per year) but bring expertise and insurance.
Can I remove or change a trustee?
Yes. A trustee can resign at any time (Trustee Act 1925 s36) provided at least one other trustee remains. Beneficiaries who are all adult and together have the full beneficial interest can remove a trustee under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). The court can also remove a trustee who has acted in breach of trust. Replacement trustees can be appointed by the remaining trustees or, in some trusts, by a named appointer.
Set up a trust in your will
WillSafe’s DIY will kit includes guidance on appointing trustees and creating simple trusts for minor children. Designed for England & Wales — complete at home, no solicitor needed.
Get the will kit →Related guides
- Discretionary trust in a will — how it works
- Life interest trust — IPDI explained
- Trust for a bereaved minor (s71A)
- Executor duties checklist
- How to choose the right executor