What are the risks of the duties of a trustee?

Being the trustee of a trust fund naturally carries certain responsibilities and risks. You should considered that as a trustee, you will be responsible for what happens to the assets in a trust fund. If you breach the obligation of due care in the management of the fund, do not manage assets properly, or you spend the resources from the fund yourself, you can be sued by the founder or beneficiaries.

However, everything will need to be covered in the statute of the trust fund, including possible compensation for the trustee, e.g. for travel expenses, phone, etc. It is also possible to arrange the performance of the duties of trustee for remuneration.

The performance of the duties of trustee therefore bear a heavy responsibility, and it should be borne in mind that the property in a trust fund must never be used by the trustee to pay his/her own expenses. It is therefore appropriate to negotiate adequate remuneration in the agreement with the founder.