As set out in earlier posts, and with
thanks to the Television Education Network, today’s post addresses the issue of ‘Important considerations
when establishing a TDT’ at the following link - http://youtu.be/D8HwIGVu8kk
As usual, a transcript of the presentation
for those that cannot (or choose not) to view the presentation is below –
Probably
the two main components, although there's a myriad of things to be taken into
account, but the two main components in light of Richstar would be firstly
around control issues.
Particularly
looking at things like who the trustee is of the trust, if there's going to be
a corporate trustee, which is not unusual nowadays in relation to testamentary
trusts, who will be the directors of the corporate trustee, who will be the
shareholders of it, will there be any
restrictions or prohibitions on who can fulfil those roles.
Similarly
in that control context, exactly who will have ultimate control if there's
going to be an appointor power? So that
would be the first main category and obviously there's a range of issues that
sit around that.
The
second category is exactly how regulated the trust is going to be in a
mechanical sense in terms of the provisions of the will. The particular things that advisers should be
focusing on are issues like:
(a)
are
there automatic disqualifications for particular roles;
(b)
if
there are automatic disqualifications, do they apply permanently, or is it just
during a period where a particular beneficiary or a particular appointor is in
strife from creditors.
Combining
these two core components and there’s obviously a range of issues in between
them, but generally as long as you can get those two broad silos right, that
will set a good framework for a very strong structure.
Until
next week.