Working with your trustee: questions answered

Most working with trustee questions are not legal puzzles. They are practical: who replies, who records a decision, how a request travels and what happens when nothing moves. The answers below describe good practice with a trustee authorised in Switzerland. What applies to you depends on your trust deed, so treat them as general information, not advice.

Under the Hague Convention, the trustee holds the assets as a separate fund, with title in the trustee's name, and must manage them and account for them. Almost every question below comes back to that duty to manage and to account.

Contact and communication

How often should I hear from my trustee?

There is no single rhythm. A well-run relationship has a regular reporting cycle (accounts, a review of the structure, a note on decisions taken) plus prompt news when something material happens. If you only hear from your trustee when you chase, the routine is missing. Ask for the reporting calendar in writing. The yearly health check is a useful prompt.

Who is my day-to-day contact?

Usually a named relationship manager or administrator, supported by a second person who can cover absences. Ask who they are and who signs off decisions. The person you speak to is not always the person who decides.

Can I speak to the person who actually makes decisions?

Yes, you can ask. In a corporate trustee, decisions are taken by the board or a committee, and the contact person prepares and relays them. A reasonable trustee will explain how decisions are made, even if it does not put every director on the call.

What should I put in writing rather than say by phone?

Anything that could later be read as an instruction, a request, a complaint or a change of circumstances: a move abroad, a marriage, a new business interest, a health event. A phone call is useful for context, but a short written follow-up gives both sides a record.

Minutes and records

Who writes the minutes?

The trustee. Recording its own decisions is part of administering the trust. Some trustees draft the note immediately; others circulate it after the meeting. You can ask how and when this is done, but you do not write the trustee's record yourself.

Can I see the minutes?

It depends on your position and the trust deed. A settlor who has kept no rights may not be entitled to everything, while a beneficiary's entitlement turns on the terms and the applicable law. Ask the trustee what it can share and on what basis. See what information your trustee must give you for the usual lines.

What should a record of decision contain?

At minimum: the question decided, the information the trustee relied on, who took part, the reasons and the outcome. A bare "approved" without reasons is weak evidence that the trustee considered the matter properly.

What if there are no minutes?

Raise it in writing and ask the trustee to explain how decisions have been recorded. Missing records are a recurring finding in reviews and often point to wider weaknesses. Our case on missing minutes found in an independent review shows how that plays out.

Instructions and decisions

Can I give instructions to my trustee?

You can express wishes, and a trustee will listen. But the trustee, not the settlor, holds the legal title and the duty to decide. Unless the deed reserves a specific power to you, your message is a request that the trustee considers, not an order it must carry out. That distinction is explained in settlor reserved powers and the trustee relationship.

Does reserving powers cancel the trust?

Not by itself. Article 2 of the Hague Convention states that powers reserved by the settlor are not necessarily inconsistent with the existence of a trust. Their scope, however, matters a great deal for how the structure is treated in practice, so it needs an individual analysis.

Why might my trustee refuse a request?

Common reasons: the deed does not allow it, the request would favour one beneficiary unfairly, information is missing, or the trustee's compliance duties require further checks. A refusal should come with reasons. If it does not, ask for them.

Can the trustee also advise me on my wider affairs?

A trustee owes its duties to the trust and its beneficiaries. Where you also want advice on your personal finances or business, ask how the trustee manages conflicts, and consider whether separate advisers are better placed to give it.

Distribution requests

How are distribution requests made?

Typically in writing, to the named contact, saying who is asking, how much (in general terms), what for and by when. The trustee then reviews the request against the deed, the purposes of the trust and the interests of other beneficiaries. In a discretionary trust the trustee decides; see the trustee of a discretionary trust.

What will the trustee ask for in return?

Expect questions about the purpose, the beneficiary's identity and residence, and the source and destination of funds. Anti-money-laundering rules (AMLA, or GwG in German) apply to trustees, so these questions are not optional courtesies.

Why does a request sometimes take time?

Because the trustee has to consider it, check compliance points, sometimes consult the protector and arrange the payment. Ask at the outset what the usual steps are, so you can plan around them. If a request is urgent, say so and explain why.

What if the trustee turns down a distribution?

Ask for the reasons in writing. If the answer is unclear, a beneficiary can raise the matter with the protector, if there is one, or take advice. Where the relationship has broken down, see a dispute between beneficiaries and the trustee.

The protector

What is the protector's role in a request?

It depends on the deed. Some protectors must consent to certain decisions, such as distributions beyond a set category; others only monitor and may remove the trustee. Read the relevant clauses before assuming the protector has a say. For the wider picture, see working with a protector.

Can the protector overrule the trustee?

Only if the deed gives the protector that power. A veto or consent right is different from a general right to give orders. The relationship between the three roles is set out in the trustee, protector and beneficiary triangle.

Should I go to the protector instead of the trustee?

Start with the trustee, who runs the trust day to day. Go to the protector when the deed calls for it, or when ordinary channels have failed. Skipping the trustee usually slows things down.

Letters of wishes

When should I update my letter of wishes?

When the family changes: a birth, a marriage or separation, a death, a sale of the business, a move abroad, or a change in a beneficiary's needs. Also when your own priorities shift. A letter that no longer matches your family helps nobody. More in letters of wishes and your trustee.

Is a letter of wishes binding?

Generally not. It guides the trustee, who must still exercise its own judgement in line with the deed. A trustee will usually give it real weight, which is exactly why it should be clear and current. See the glossary entry on the letter of wishes.

Who sees my letter of wishes?

The trustee, and sometimes the protector. Whether beneficiaries can see it is a question for the deed and applicable law. If confidentiality matters to you, tell the trustee and agree how the letter is stored and shared.

How does a trustee use the letter?

As one input when taking a decision, alongside the deed, the facts and the interests of the beneficiaries. Good trustees record that they considered the letter. Example: a family in Lausanne adds a paragraph on a grandchild's education; the trustee notes it when a related request arrives.

Beneficiaries

Who replies to beneficiaries?

The trustee does, or its named contact. Beneficiaries should have a clear route, and the settlor should not become the go-between by default. For the duties involved, see what a trustee owes the beneficiaries.

What can a beneficiary ask to see?

Usually information that lets them understand their position, such as the nature of the trust and, depending on the deed and law, accounts. The extent varies. A trustee should explain what it will provide and why, rather than simply saying no.