Tuesday, October 6, 2020

Trusts structuring checklist - part III**

View Legal Blog Trusts structuring checklist - part III

The last two posts have each mentioned seven key issues that should generally be considered whenever establishing or amending a discretionary trust deed.

Set out below are a further seven issues that should generally be taken into account:
  1. If there is an appointor, is the role automatically terminated on certain events (for example death, bankruptcy)?
  2. If the appointor ceases to act, do their powers pass to anyone else, and if so, who?
  3. If there is more than one appointor, must they act jointly?
  4. Is the appointor a beneficiary of the trust?
  5. Will the trust own more than one asset class?
  6. For an existing trust, has there been a pattern of income or capital distributions to at risk individuals associated with the trust?
  7. For an existing trust, have there been variations to the deed following establishment that impact on the overall control of the trust?
** for the trainspotters, a classic song from Led Zeppelin album ‘III’, namely ‘Immigrant song’.