EXCERPTS FROM THE TRUSTS BILL 2017
How will trusts you're involved with comply with the new Trusts Act? If you are a lawyer or accountant, are you confident you and your clients are going to meet the new requirement? While still in draft, The Trusts Bill sends a clear signal about the need to improve record-keeping and compliance, especially by non-professional trustees.
Is this the catalyst you’ve been waiting for to engage with your trustee clients? To implement greater measures to improve trust compliance and management (for all parties involved), and to make a fair return for the risk and effort involved in being a trustee?
Also, is there a better and easier way for trustees to fulfil their legal obligations than by being on one of Connectworks connected subscriptions plans, whereby they can access all the trusts’ documents? This is in addition to other benefits, such as significantly improved management, evidence of ultra-vires actions, secure storage of all trust information and anywhere, anytime access.
Excerpts from the proposed requirements include;
● 22 Duty to know terms of trust
● 23 Duty to act in accordance with terms of trust
● 27 General duty of care
● 28 Duty to invest prudently
● 37 Restriction on trustee exemption clauses
● 38 Restriction on trustee indemnity clauses
● 41 Trustees must keep core documents
Each trustee of a trust must keep, so far as is reasonable, the following documents relating to the trust:
(a) the trust deed and any other document that contains terms of the trust:
(b) any variations made to the trust deed or trust:
(c) records of the trust property that identify the assets, liabilities, income, and expenses of the trust and that are appropriate to the value and complexity of the trust property:
(d) any records of trustee decisions made during the trustee’s trusteeship:
(e) any written contracts entered into during that trustee’s trusteeship:
(f) any accounting records and financial statements prepared during that trustee’s trusteeship:
(g) documents of appointment, removal, and discharge of trustees (including any court orders appointing or removing trustees):
(h) any letter or memorandum of wishes from the settlor:
(i) any other documents necessary for the administration of the trust:
(j) any documents referred to in paragraphs (a) to (i) that were kept by a former trustee during that person’s trusteeship and passed on to the current trustee.
● 43 Documents must be kept for duration of trusteeship
● 44 Trustee must pass on documents
● 47 Presumption that trustee must notify basic trust information
(to beneficiaries of their representatives)
The full legislation can found here.