Do we still need our Trust?
There has been a lot of commentary on the impact of the new act on Trustees and how they are now required to do SO much more!
The reality is that a Trustee who approaches their appointment in the manner a reasonable person would and always acts for the good of the beneficiaries, has nothing to be feared with these new provisions.
We suggest you consider the following factors, to determine if your trust is still relevant:
- What was the reason for establishing the Trust?
- Does this reason still exist?
- What assets are held by the Trust?
- Are you happy to have details of those assets shared with Beneficiaries?
- Is your income over $180,000 pa? If yes, a trust could be useful.
Depending on your answers to these questions you may decide that the Trust is still useful and so status quo prevails. Download our Trustee Obligations Guide that will be useful as you consider the administration of your trust and duties of trustees going forward. Click here
Alternatively, if you conclude that the Trust has served its purpose and is no longer relevant then it would be best to pass a resolution to dissolve it. This process, while straight forward, must be planned and done correctly to be assured that there are no unforeseen tax or contestability issues.
If you need guidance in answering these questions come and have a chat, we are happy to act as a sounding board to help you process your thoughts.
Photo Matt Hardy - Unsplash