A trustee is an individual or legal entity to which the settlor transfers legal title to the trust asset(s). Trustees must also agree to manage the trust and its assets for the benefit of the beneficiaries in accordance with the terms of the trust deed. While being the holder of legal title means the trustee is in full control of the trust assets, the trustee is nevertheless under a legal obligation to exercise a heightened fiduciary duty of care – trustees must maintain trust property in the best possible manner for the benefit of the Beneficiaries. Trustees are required to act with due diligence, care and prudence, and to the best ability and skill of the person. Moreover, the trustee is legally precluded from using the trust assets for his own ends, as the beneficial ownership resides with the beneficiary.
Trustees are also subject to demanding professional licensing standards. All Seychelles trust service providers must comply with stringent regulation and strict requirements. All practitioners in the offshore industry, including trustees, must be licensed by the Commission before engaging into any of the international financial services. The regulatory authorities in Seychelles pay particular attention that Trust firms prove a high standard of staff competence and integrity, have adequate internal system of controls and procedures, and are substantially capitalized.
