What is a Trust?
A Trust is formed when a person or entity (the Trustee) holds assets for the benefit of another person or class of persons or entities (the Beneficiaries). Strict legal and fiduciary obligations are imposed upon the Trustee in order to protect the Beneficiaries’ interest in the trust assets. Under these obligations, a Trustee must act:
- in good faith, honestly and not profit from the Trust (as Trustee);
- with due care, skill and diligence and avoid conflicts of interest;
- in the best interests of the Beneficiaries;
- to preserve the Trust property;
- in person and not delegate their duty to another person; and
- transparently and account and provide information to the Beneficiaries, upon request.
The Trustee’s failure to comply with its fiduciary obligations can result in the Beneficiaries commencing legal proceedings against the Trustee in respect of such breach. [...]
