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Viewing 6 posts - 141 through 146 (of 146 total)
  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You can talk to your lawyer about trust splitting. Careful plannning may mean it possible to split the trust without a new trust being formed. very complex area though

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Istvan051Istvan051
    Member
    @istvan051
    Join Date: 2005
    Post Count: 221

    My grandmother is being very incoorperative over the trust situation. She refuses to make any changes to the trust deed. My grandfather wants to make changes to ensure she only takes her share of the trust appointer. However, the accountant requires both of them to agree in order to make any kind of changes to 35 year old trust deed as they are both trustees. This morning I made the following document which I think I may get my grandfather to sign under the radar which in the future could be used as evidence for his actual wishes in the court.

    What is a Discretionary Trust Deed?

    A Discretionary Trust, also known as a Family Trust (there is a differing definition in the Tax Acts), is not a separate legal entity unlike a Company. The sole purpose of a Discretionary Trust is to distribute income to particular Beneficiaries nominated in the Deed and decided by the Trustee at any given time (at the trustee's discretion). Reasons why you would consider using a trust are: Asset Protection, Estate Planning and flexibility for distribution of income.
    Whilst a Trust cannot hold assets or incur liabilities, the Trustee has a legal obligation to hold and maintain the assets and liabilities on behalf of the Trust for the Beneficiaries.
    The most common form of a Trustee is an Incorporated Company controlled by the Principal Beneficiary (Appointor) of the Trust to ensure the continuity and future security of the Trust.

    Definitions

    Settlor : The person who establishes the trust. Once the Trust has been created the Settlor no longer has any rights or benefits from the Trust.
    Trustee : Person (Company) who has legal title/control over property/assets on behalf of another. A Trustee may be a Company to place assets at arms length from your business and personal assets. Property and assets are purchased and held by the Trustee (e.g. "Trustee" as trustee for the "Family Trust").
    Beneficiary : Primary Beneficiaries are the people for which the Trust is created (usually lineal family); General Class of Beneficiaries may be anyone related to the Primary Beneficiaries, non-lineal family, and any company/trust in which a primary beneficiary of the trust has an interest.
    Appointor : The person who represents the Primary Beneficiaries and may cease or appoint the Trustee.
    Succession Appointor : Appointor's personal representative to take over the role upon the death, resignation or inability to act of the Appointor. This is an important consideration when setting up the Trust as Assets held in a trust do not form part of your estate and do not pass in accordance with the terms of your will.

    XXX XXX Senior and Mrs XXX should be made to be current appointers.

    In the event of XXX XXX senior death his succession appointer is given to XXX XXX junior. In the event of Mrs XXX death her succession appointer would be a spouse/child of her choice.

    I XXX XXX Senior Herby Declare that in the event of my death my wishes are for Mrs XXX and my Son XXX XXX junior to have equal control over position of the role of appointer of XXX Family Trust. I understand this would involve the position of appointer being given both to Mrs XXX and XXX XXX Junior.


            Date


    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Who are the appointors now?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Istvan051Istvan051
    Member
    @istvan051
    Join Date: 2005
    Post Count: 221

    I dont know yet. My grandfather told me he is going to see the accountant over the next 2-3 weeks. I also sent the accountant an email explaining to her what my grandfather needs to do and the reasons why. The reasons for that was that my grandfathers ability to communicate is not exactly perfect and I really think she needed someone to pre explain to her the situation. She however also told me that both trustees are required to make any desisions. I really dont think my grandmother will co-operate from what ive seen.
    I feel like my grandmother is hiding something and not being honest.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If your grandmother is not appointor you grandfather is sole appointor then your grandfather may be able to remove her as trustee.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Istvan051Istvan051
    Member
    @istvan051
    Join Date: 2005
    Post Count: 221
Viewing 6 posts - 141 through 146 (of 146 total)

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