What is the difference between a Trustee, Custodian and a Custodian Trustee?
Custodian trustees must meet special requirements so should not be confused with custodians or trustees. When a trust is set up, there is the beneficiary who has absolute rights to assets and income generated by the trust.
Trustee: Someone nominated to manage the assets of the trust for the beneficiary.
Custodian: An organisation such as a bank, or a stock company which holds the assets. Custodians do not have the authority to make decisions on how to manage the trust whereas trustees do.
Custodian Trustee: Selected from bodies listed under rule 30 in the Public Trustee Rules 191 (more specific than a custodian). The sole purpose of a custodian trustee is to hold trust assets. Separate trustees are appointed to manage these assets.
Who requires a
Charities and churches predominantly need to appoint custodian trustees to hold properties.
How we can
The legislation around custodian trustees is challenging to navigate. We can use our experience to set-up your trust and find a suitable custodian trustee. Your requirements will be met through our efficient and reliable service. Call us to discuss your circumstances and book a free consultation with More Group.