This book is only available in PDF format

Authors: Don MacKenzie, Tammy McLeod
Published: 13 April 2017
Pages: 36

Introduction

Over the last twenty years more and more people have established trusts to protect their
assets. Their reasons have been varied ranging from tax efficiencies, asset protection and
some simply because their friends have them and they think they should have one too. As
we are nearing the second decade of the 21st century, many are questioning why they have their trusts – do trusts still offer the same protection they did 20 years ago? Are the
reasons for having a trust the same? What new reasons might people have for establishing a trust? Are the kind of trusts we establish the same as they were twenty years ago?

Content outline

• Part one – Establishing a trust
  • Creditor protection
  • Relationship property reasons
  • Income splitting flexibility
  • Long term hold of assets
  • Estate planning flexibility
  • Accounting requirements
  • Taxation considerations on settlement
  • Taxation issues for the trustees
• Part 2 – Reviewing a trust
  • Independent trustee
  • Class of beneficiaries
  • Appointment and removal of beneficiaries
  • Removal of trustee
  • Section 13D contrary intention
  • Unanimous decision-making of trustees
  • Income allocation period (now 12 months)
  • Shareholding trusts
  • Relationship property issues
  • Use of a corporate trustee
  • The big OE
  • Foreign trusts
  • Buying and selling land
  • Death of a trust
• Part 3 – Variations
• Part 4 – Resettlements
  • Appointment as a trustee
  • Unanimity
  • Professional liability insurance
  • Solvency of trust
  • Activities of the trust
  • Insurance
  • Limiting liability
  • Use of a corporate trustee
  • Trustee fees
  • Summary
  • Risk management checklist
• Part 5 – Trustee duties
  • To understand the terms of the trust deed
  • To act in the best interests of the beneficiaries
  • Impartiality
  • The duty to act personally
  • Unanimity
  • To look after the trust property
  • Not to profit from the trust
  • Accountability
  • Personal liability