Earlier posts have looked at various aspects of the mantra ‘read the deed’ – see -
Another reminder to ‘read the deed’
ATO reminder – read the deed
Read the deed - another reminder re invalid distributions
As set out in earlier posts, and with thanks to the Television Education Network, today’s post considers some related practical issues in relation to the read the deed mantra in a ‘vidcast’ at the following link - https://vimeo.com/145349504
As usual, an edited transcript of the presentation for those that cannot (or choose not) to view it is below –
This case study involves a family trust deed produced by a reputable deed provider – or at least a well-known deed provider, producing a deed in 2009.
This particular deed provider had adopted a ‘schedule’ approach. That is, in the back of the document, they had a schedule. Under that schedule, they listed a number of key things. For example, they had the date of establishment, the trustee, the principal and the beneficiaries.
They then had the vesting date.
A further reminder - this is a well-known provider, with a well-known accounting firm, with a high net wealth client.
The date of establishment of the trust was listed in the schedule as 28 June 2009.
The vesting date was listed as 29 June 2009.
That is they had created a one-day trust.
This trust deed came to us 2015 as the client wanted to do a trust split and we said ‘we need to read the trust instrument’.
Ironically we had trouble getting a copy of the trust instrument.
For some weeks we only had a photocopy of the undated document, however we held firm that we really needed to see the entire document, with the schedule completed. When we finally got the stamped trust deed and completed schedule our entire advice was one sentence – that is ‘do you realise your trust ended over six years ago. What are we going to do about this?’