They may not act in a way that violates this duty or is outside the parameters of the trust instrument. Trustees could find themselves personally liable for losses suffered by the trust if it can be proved that they did not act with the necessary care, diligence and skill that can reasonably be expected of a person who manages the affairs of another.
With this role comes certain rights, including the right to remuneration. The question remains how much are trustees allowed to charge for their services that are commensurate with the risk undertaken by them for acting as trustees.
Section 22 of Trust Property Control Act permits a trustee to receive reasonable remuneration. The Trust Property Control Act does not, however, contain any further provisions on trustee remuneration.
The lack of guidance on what is “reasonable remuneration” sometimes leads to the abuse of persons acting as trustees, especially where independent, non-family trustees are appointed and seek remuneration that is commensurate with the risk undertaken by them as trustees.