Estate Planning Essentials: How Trustees and Attorneys Can Protect Family Wealth

Serving as a trustee or attorney is a serious responsibility. Whether you are managing a trust for a loved one, acting as an attorney under a Lasting Power of Attorney (LPA), or administering a charitable trust, you are legally and ethically required to act in the best interests of the beneficiary or donor.

At Strategic Vision Wealth Management Ltd, we understand that trustees and attorneys face unique financial, legal, and administrative challenges. Our specialist advice helps you to meet your obligations, manage assets prudently, and ensure the long-term security of the trust or estate you’re overseeing.

1. Understanding Your Legal Duties

When acting as a trustee or attorney, you have specific duties under UK law, primarily governed by the Trustee Act 2000, the Mental Capacity Act 2005, and associated regulations.

Your responsibilities include:

Acting honestly and in good faith
Managing investments prudently and diversifying risk
Keeping clear records and accounts
Acting in the best interests of the beneficiaries or the donor

Failing to meet these duties can have legal consequences. With our support, you can ensure compliance while making confident, informed decisions.

2. Managing Investments Responsibly

Trusts and estates often involve managing substantial sums of money or valuable assets. As a trustee or attorney, you must ensure these are invested wisely, with appropriate risk management and a long-term strategy.

We provide:

Bespoke investment advice aligned with the needs of the beneficiaries
Guidance on balancing income generation with capital preservation
Assistance with creating a Statement of Investment Principles to document decisions (as recommended under the Trustee Act 2000)
Regular portfolio reviews to ensure performance remains on track.

This helps you to fulfil your duty of care and ensure the funds continue to meet the purpose of the trust or estate.

3. Tax Planning for Trusts and Estates

Trusts and estates face complex tax rules, including:

Income Tax on trust income
Capital Gains Tax (CGT) on asset disposals
Inheritance Tax (IHT) on trust assets

We work closely with accountants and solicitors to:

Minimise tax liabilities through effective structuring
Ensure timely tax reporting and compliance with HMRC
Advise on distribution strategies to beneficiaries in a tax-efficient manner

With clear tax planning, more of the assets are preserved for the beneficiaries, reducing administrative headaches.

4. Planning for Beneficiary Needs

Different trusts serve different purposes — some provide regular income, and others preserve capital for future generations. Balancing the needs of current and future beneficiaries is crucial.

We help trustees and attorneys:

Assess the financial needs of beneficiaries and set appropriate distribution strategies
Consider vulnerable beneficiaries, such as minors or disabled individuals
Structure payouts to avoid disrupting means-tested benefits or triggering excessive tax charges

Our goal is to help you provide long-term financial security for all intended recipients.

5. Supporting Attorneys Under an LPA

If you are acting under a Lasting Power of Attorney (LPA) for property and financial affairs, your responsibilities include managing bank accounts, paying bills, making investment decisions, and safeguarding the donor’s financial well-being.

We offer:

Clear advice on suitable low-risk investments
Assistance in budgeting for care fees or lifestyle costs
Support in record-keeping and meeting your legal obligations
Guidance on integrating financial and estate planning for the donor

This ensures the donor’s assets are protected and used appropriately throughout their lifetime.

Conclusion

Acting as a trustee or attorney is an honour, but it comes with complex challenges. With the right advice, you can confidently manage the assets entrusted to you, fulfil your legal obligations, and secure the financial well-being of the beneficiaries.

At Strategic Vision Wealth Management Ltd, our expert advisers are here to guide you every step of the way, providing tailored financial planning, investment management, and tax advice for trustees and attorneys across the UK.