THE COMPREHENSIVE TRUST DEED REVIEW PROCESS
Topdocs provides a Comprehensive Trust Deed Review service, ordered easily for single or bulk trust deed reviews.
Why have a trust deed reviewed? Naturally, the needs of Appointors, beneficiaries and other parties can change during the term of a trust. In addition, many deeds do not include the quality of the drafting of the Topdocs deed. All of these factors contribute to the risk of the trust deed being out of date or not accurately reflecting the current requirements of the trust.
To ensure the trust deed is current and provides the best strategic provisions, Topdocs, in conjunction with the specialist lawyers at Topdocs Legal, provide a Comprehensive Trust Deed review service to determine the health of your trust deeds. Our Comprehensive Trust Deed Review service broadly involves two stages - the review and the recommendations.
The first stage, the review, involves a comprehensive evaluation or assessment of the trust deed by testing the deed against a number of areas the deed may have issues. An example these potential issues are outlined below.
See an example of the areas reviewed in the Comprehensive Trust Deed Review process ... [more]
- strategic control options particular in bankruptcy
- clarifying appointor succession provisions to cover an array of potential circumstances including survivorship between joint appointors and determining mental impairment and incapacities
- dealing with the streaming for minors with proceeds from deceased estates, superannuation funds and life insurance
- provide for family trust elections where bad debts, trust losses or more than $5000 imputation credits are available and addressing the potential adverse tax liabilities that may arise on distributions outside the family group
- addressing state anomalies with change of trustee such as stamp duty issues with land ownership and vesting issues with registration requirements
- dealing with amounts set aside for corporate or trust beneficiaries to avoid Division 7A problems
- expanding the definition of relationship and children for more complex family situations
- permitting conflicts of interest in a wide variety of instances to avoid the common law breaches
- updating for current banking practices in particular investments in derivatives and options
- setting out dispute resolution provisions outside of the courts to avoid court ordered vesting
- allowing a trustee (with or with the appointor's consent) to change the vesting date to allow for changes to perpetuity laws
- providing appropriate disclosure and non-disclosure provisions to protect the integrity of the trust
- limited liabilities on trustee appointments or nominations
- outgoing trustee indemnities to avoid later liabilities for reassessments of tax and protecting and clarifying the obligation of incoming trustees
- specifying investment decision making skill required for your circumstances
- providing express trustee powers that match your use of the trust to clarify operation and administration of the trust
- clarifying the use of electronic technologies with email notifications and facilitating decision making in more than one place
THE COMPREHENSIVE TRUST DEED REVIEW RECOMMENDATION REPORT
Based on the outcome of the review process, a detailed report of any recommended amendments required for the deed is provided. The recommendation report outlines why the amendment has been proposed and the priority (high, medium or low) of the amendment. We also include a tailored quote that outlines the associated costs to have the amendments implemented by Topdocs.
If you are worried about resettlement issues you will be pleased to note that following the Full Federal Court decision in Clark¹ handed down on 21 January 2011, the confirmation of the earlier 2001 High Court decision in Commercial Nominees² , the ATO’s withdrawal on 20 April 2012 of its Statement of Principles on the Creation of a New Trust and its release of a Decision Impact Statement last updated on 11 May 2012, it is clear many changes to a trust deed may be acceptable without causing a resettlement so long as continuity of the trust estate has been maintained.
¹ FC of T v Clark  FCAFC 5
² FC of T v Commercial Nominees  HCA 33
WHY ORDER A COMPREHENSIVE TRUST DEED REVIEW?
- Your trust will be reviewed by a specialist trust solicitor
- You are provided with a comprehensive report outlining the health of your trust
- Helps you ensure your trust is meeting your specific requirements now, and in the future
You can learn more about the Topdocs Comprehensive Trust Deed Review documentation in the RELATED INFORMATION tab.
Should you have any queries or require more information, please call the team at Topdocs on 1300 659 242.