The impacts of the new Trusts Act 2019 are significant for your obligations and rights as a Settlor, Trustee or even as a Beneficiary. There are a number of actions you should be taking now in order to meet the obligations of the Act as from January 2021.
1. Collate Trust Documentation
- All Trustees must have copy of Trust Deed and changes to Trustees
- At least one Trustee must have a copy of all core Trust documents which is available to all other Trustees
2. Review Core Document
The Trust Documentation needs to be reviewed.
- Is the Trust still relevant?
- Is the Beneficiary definition too wide?
- Are there out of date clauses, for example:
- Income accumulation clauses incorrect
- Beneficiary appointment clauses
- Narrow variation powers
- Limited rights to resettlement
- Limited powers to remove Trustees
- Do the default Trustee duties need to be modified?
3. Information disclosure
- All beneficiaries are entitled to receive basic Trust information
- Other Trust information to be made available upon beneficiary request unless Trustees resolve not to
- Settlors and Trustees need to meet to discuss disclosure
Please contact us now to discuss your plan to meet these obligations.
Lifelaw team
Stephen Jeffery, Monica Ryan, Gerard Thwaites, Chris Anderson, Rosemary Aitken, Vanessa Boyd, Sherie Adams, Lisa Penn, Ant Lilley, Julie Hutton
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