Trust Review Service

The Trustee Act 2000 obliges Trustees to ensure Trust assets are invested appropriately, tax efficiently and regularly reviewed.

As the Trustee, it is your regulatory responsibility to seek professional advice and create an Investment Policy Statement aligned to the Trust objectives. This is a mandatory requirement, especially if you are appointing an external investment manager. Non-compliance could result in a negligence claim.

Investing Trust Assets

The Trustee Act 2000 obliges Trustees to ensure Trust assets are invested appropriately, tax eiciently and regularly reviewed.

When a Trustee is considering the best way to invest Trust assets, it is not simply a matter of minimising risk. For instance, an overweight cash position might be perceived as ‘safe’ from capital loss, however this does not entirely satisfy the Act’s requirements, given spending power will be eroded by inaction over the longer-term.

As a Trustee you need to be clear why you do (or do not) have exposure to each asset class: UK equities, overseas equities, cash, corporate bonds (investment grade and high yield), property (commercial and residential), and alternatives. Our Trust Review
Service involves assessing the objectives of the Trust and creating an Investment Policy Statement considering all of these asset classes.

There may also be a need to generate income for one of the beneciaries so the choice of asset class and make-up of the portfolio will need to reflect this.

A further consideration when making investment decisions is the immediate and on-going taxation implications. As we work closely with our internal taxation and trusts department, we can draw on their expertise and ensure you are put in an informed position before making any decisions.

Trust Review Service

Our Trust Review Service is available for both individuals as well as professional trustees. For the professional trustee, we will help enhance your proposition to Trustee clients and ensure compliance with the Trustee Act. It could include a systematic review of all Trusts within your practice.

For all trust cases our review service will cover the following:

  • Initial Review – a ‘suitability’ report analysing the Trust assets in relation to the Trustee Act. We also recommend corrective action to address any weakness within the portfolio.
  • Investment Policy Statement – creation of a bespoke Investment Policy Statement for the Trust.
  • Annual Review – short-form ‘suitability’ report highlighting any changes in legislation and the investment world, with an update on the progress of the portfolio.

Suitability Report

Each suitability report contains the following information:

  • Overview of the Trustee Act and broader considerations
  • Note on current tax legislation for Trusts
  • Trust Investment Policy Statement
  • Suitability of the investments to meet the Trust objectives
  • Suitability of the Trust assets in relation to the current investment climate
  • Taxation position of current assets
  • Review of performance against benchmark
  • Strategy for formal Trust reviews
  • Summary of current position Suitability

Why Ward Goodman?

  • Unrestricted and impartial advice from the whole of the market
  • Our focus is on service not product sales with over 70% of our income from existing clients
  • A truly transparent charging structure
  • We have the ability to access the technical expertise within the Ward Goodman Group
  • The provision of a robust and structured review process to keep you on track to meet your financial goals. 

Have any questions?

Contact your local office and a member of our team will be able to assist you with your query.

Book a Call Back

If you would like to discuss further, please book a call back with an experienced member of our team. Simply let us know when’s best for you and we will get in touch to arrange a suitable time.

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