The trust deed
Your trust deed is the foundation document. We examine it carefully to understand what powers the trustees have, who the beneficiaries are, and what restrictions apply.
Key provisions we check:
- Trustee powers: What can the trustees do? What requires consent or approval?
- Beneficiary classes: Who can benefit? Are there restrictions? Can beneficiaries be added or removed?
- Vesting date: When does the trust end? What happens then?
- Appointment and removal: How do you change trustees?
- Variation powers: Can the deed be changed? How?
- Resettlement powers: Can assets be transferred to a different trust?
Trust administration
A trust that isn't properly administered may not provide the protection you expect. We look at how the trust has been run in practice.
Are trustee decisions properly documented?
Are accounts kept separately from personal finances? Are annual financial statements prepared?
Are distributions made as the trust deed requires? If income is said to be distributed, has it been paid out?
Is there a current list of trust assets and liabilities?
"The Trusts Act 2019 now requires trustees to keep core trust documents. If you don't have proper records, a review is an opportunity to get your administration in order."
The trustees
Who your trustees are matters enormously. We look at whether your current trustee structure is appropriate.
- 1 Are there enough trustees? Most deeds require at least two trustees. Many require an independent trustee.
- 2 Is there succession planning? What happens if a trustee dies or loses capacity?
- 3 Is there an independent trustee? This can be important for asset protection.
- 4 Do trustees understand their duties? The new Act increases trustee obligations.
The beneficiaries
Beneficiary rights have changed significantly under the Trusts Act 2019. We check whether your trust's approach to beneficiaries is still appropriate.
Beneficiaries now have a presumptive right to information about the trust. Your deed may allow you to limit this, but it needs to be done properly.
Have questions about what we'd examine? Call us on 06 835 7394.
What we do at this stage
We conduct a thorough document review and prepare questions to discuss with you.