My last post highlighted some of the key points that your Trust Deed needed to have which is pretty obvious to you now. Let’s move onto the more exciting topic of Trust Management which you’ve all been holding your breath in anticipation for.

Trust Management and Administration

Guess what, somebody’s got to manage the Trust (they’re called Trustees) and this doesn’t have to be you, but you can also be a Trustee too. Your accountant, lawyer, friend or relative can be tasked with this important role. Fortunately the Deed assists with this as it covers the following administrative points, as distinct from the key points highlighted in my previous blog:-

1. Holding  and number of meetings per year.
2. How to change or add Trustees.
3. How often to prepare and present financial accounts.
4. Whether Trust is to be audited.
5. How to amend the Deed.
6. The need for minutes as a record of the meetings of the Trustees.
7. You can tailor the Deed to include other administration matters as you wish.

The Deed, Who does the Dirty Deed?

The Deed is like your procedures manual on how to manage the house keeping aspects of the Trust and you don’t have to write it by yourself. The good news is this is all done by your lawyer. They do this all the time and have drafts that can be compiled into a Deed that suits your needs. You do have to pay them for this however. I should’ve been a lawyer!!!!

Back to the Will

Remember my earlier blog about Wills https://mydynastymap.com/2016/12/05/wills/

Your lawyer needs to now review your Will in the context of your new Trust, as guess what? Yes, you guessed it, you don’t own the assets anymore!! They’re all owned by the Trust, so your will has to be changed now to reflect this. Again this is a simple process of drafting a new will which will basically deal with how your estate will be wound up, creditors paid, your burial/cremation instructions and any minor bequeaths to spouse, family, individuals, charities etc, with funds from your personal bank accounts.

The Recap

We’ve now come around full circle from the original will to the living Trust to the new will replacing the first will. Are you confused? I hope not, I can’t get my old job back!!