Trustee resolutions are the formal records of decisions made by trustees—especially when meetings are conducted remotely or via telephone. They document actions like approving minutes, signing off on financial statements, authorizing distributions, and confirming major transactions. Without these records, significant decisions may go undocumented, exposing the trust to challenges and trustees to liability.
Why Formal Resolutions Matter
- Legal Compliance: Trustee resolutions ensure that trustees fulfil their legal duties by documenting decisions, reducing risk of disputes or breach-of-duty claims.
- Transparency & Accountability. Written records demonstrate that the trust deed authorises the decisions being made and that trustees have considered all relevant facts before making decisions, ensuring transparency and accountability.
- Proof of Due Diligence. By citing supporting documents—such as asset valuations or legal advice—resolutions show trustees reviewed the trust’s position before approving loans, investments, or distributions.
Safeguarding Beneficiaries’ Interests
Trustees must act for beneficiaries’ benefit. Recording decisions—whether distributing income, selling property, or entering contracts—reassures beneficiaries that no action is arbitrary. A concise record shows how each decision impacts entitlements and confirms that trustees weighed all necessary factors.
Building a Historical Record
Each resolution becomes part of the trust’s minute book or deeds register, creating a chronological “paper trail.” This archive is vital when:
- Reviewing Past Decisions. Future trustees or auditors can see why actions—like renewing a loan facility—were taken.
- Facilitating Succession. New trustees can review a documented history of past decisions and rationales.
- Resolving Disputes. In disputes or beneficiary challenges, a complete archive shows trustees agreed on essential matters.
Why, in a nutshell
Trustee resolutions are more than paperwork—they prove that trustees met their obligations, acted transparently, and protected beneficiaries. By formalizing decisions in writing, trustees strengthen the trust’s integrity, minimize legal risk, and preserve a clear record for future reference. Give us a call today!