Trustee's accountability

Abstract

The trustee has a fiduciary responsibility towards the parties with an interest in the trust. The parties with an interest in the trust may have certain expectations and requirements of the trustee. The main responsibility and accountability ascribed to and expected of the trustee are for the proper maintenance and administration of the trust and its assets. The parties with an interest in the trust may be classified according to how closely involved or affected they are by the existence of the trust. The parties closest to the trust are listed as the founder, beneficiaries and co-trustees. Parties with a judiciary, legislative and administrative interest in the trust include the Master of the High Court, the High Court and the auditors as well as accountants of the trust. The parties with an interest in the trust may not be satisfied with the actions or performance of the trustee. These parties may seek actions and remedies to hold the trustee accountable. These actions and remedies may be found in legislation, the literature, common law or court judgements. It would also be in the trustee’s interest to be informed of the different actions and remedies that could be utilised to hold him accountable. Different types of action are available to hold the trustee accountable, including civil and criminal remedies. The Trust Property Control Act 57 of 1988 does not provide for criminal remedies, but provides an array of civil remedies to hold trustees accountable. The Aquilian action is also available to parties to hold a trustee accountable who committed a breach of trust. The focus of the mini-dissertation is to determine the landscape of remedies and actions available to parties with an interest in the trust in order to hold the trustee accountable.