Trustee Duties

A Trust creates a fiduciary relationship with respect to property, subjecting the Trustee (titleholder) to equitable duties to the beneficiaries. That fiduciary relationship imposes certain legal duties on the Trustee: a duty to be generally prudent; a duty to carry out the terms of the Trust; a duty of loyalty to the Trust and the beneficiaries; a duty to give personal attention to administration of the Trust; a duty to maintain accurate records and account to the beneficiaries; and a duty of impartiality as between beneficiaries. Additional Trustee duties can be set forth in states’ trust acts and the individual trust agreement.

Ongoing Role of Trustee with Respect to Shared Ownership Property

FNTC works closely with resort owners, operators, managers, lenders and counsel as a professional independent Trustee adhering to all the duties set forth in the Trust Declaration, as well as protecting the interests of all the beneficiaries / members of the resort or club.

First and foremost the Trustee is responsible for taking title to the property being put into Trust for the beneficiaries. With that responsibility comes reasonable due diligence requirements on the Trustee with respect to real property being transferred into the Trust. (For example, FNTC regularly requires up-to-date environmental due diligence reports and municipal lien certificates indicating that the property is unencumbered at the time the Trust is settled and periodically thereafter.)

The Trustee maintains a membership registry and manages inventory controls. The Trustee issues beneficial interest certificates to interval purchasers evidencing their ownership interest or right to use. The Trustee can also maintain in the Trust register an up-to-date record of mortgages or consumer loans placed against the owner-members’ interests. If owner-members wish to sell or otherwise transfer their interest, the Trustee facilitates this process as well. In the event that the resort developer, lender or home-owners association needs to foreclose on a unit or interval, the Trustee can facilitate a cancellation pursuant to the terms of the Trust Declaration (and / or loan documents) more quickly and efficiently than a traditional deed foreclosure process.

Why use an independent, professional, specialist trustee like FNTC America Trust Company?

• Asset Preservation - Stringent regulatory oversight and internal controls ensure the safety and preservation of trust assets. FNTC America is a chartered non-depository trust company by the New Hampshire Banking Department and must establish and maintain policies and safeguards to avoid the misappropriation of client funds and provide for the proper management of a client’s account. Client funds are never commingled. Dual controls are maintained over client assets. Proper insurance is maintained to protect clients from losses due to inappropriate actions of employees. Using a corporate trustee should provide more safeguards to the trust assets than using an individual trustee.
  
• Professional Expertise - Independent trust companies are staffed by individuals experienced in the management of assets as well as knowledgeable about the laws that have been established to administer these assets. FNTC’s professionals are trained and skilled in the administration of a wide variety of accounts. Most individual trustees do not have this level of expertise.
  
• Perpetual Administration - Many trusts will exist for several generations, well beyond the life expectancy of a single individual. Professional trust companies like FNTC provide perpetual administration of the trust estate that an individual cannot. An independent trust company is an organization of professionals and is not dependent upon any one individual. FNTC America draws upon the collective resources of all employees to ensure that clients’ needs will be met. FNTC America administers assets under its control objectively and without the emotion that may be present if a family member, business partner or outside counsel is asked to serve in the capacity of trustee. This objectivity can avoid costly legal battles and can ensure that each beneficiary is treated fairly.

For more information on how FNTC America can help your business please email FNTC America or contact by phone at (+1) 866 978 2571