What does the trustee do in a discretionary trust?

The trustee is the legal owner, not the beneficial owner, of the trust property. It is the responsibility of the trustee to administer the trust, including investing the trust funds and deciding to whom the distribution of trust income is to be made. Any decisions made by the trustee should be minuted and retained with the records of the trust.

The trustee carries out all transactions of the trust in the trust’s name and must sign all documents for and on behalf of the trust. The trustee’s overriding duty is to obey the terms of the trust deed and to act in the best interests of the beneficiaries.

The trustee may resign from its role by tendering its resignation to the appointor.