Again this last week, we have had some more issues arise in relation to family trusts.
As is often the case, the issue from this week was identified by a financier.
The issue arose due to a review of some historical variation deeds to the original trust documents.
Due to a relatively unusual provision, the original trust required that any variation could only be made with the consent of the settlor (i.e. the person who originally set up the trust) and all of the 'primary' beneficiaries who were set out in the schedule to the trust.
None of the earlier variations had received consent from any of the relevant parties.
The solution (which is still to be approved by the bank) was to implement a comprehensive deed of confirmation and obtain signatures from all relevant people – fortunately, the settlor was still alive and willing to assist.
Next week, I will touch on some other practical difficulties that we are going to need to consider and possibly address in the future.
Until next week.
Matthew Burgess
