Trusts / Asset Planning

Trading Trusts: Are They For You?

Created: Wednesday, 05 November 2014 21:52

Published in Inside Tourism, Issue 1002, 4 November 2014

We are often asked to explain the concept of a "trading trust" and its advantages and disadvantages for operating a business.

Essentially, a trading trust is a business operated by a company in its capacity as a trustee. The trustee company is operating the business for the benefit of the discretionary beneficiaries of the trust.

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Executors: What Do They Do And Who Should Be Appointed

Created: Monday, 06 May 2013 12:00

One of the key decisions to be made when writing your will is who to appoint as executor. This choice is very important as it has ramifications for your beneficiaries and for the successful carrying out of your wishes under your will.

In short, the executor is your personal representative on your death, responsible for disposing of your body; proving the will and obtaining authority to administer your estate; paying your debts and distributing the estate. The effect of executorship is to grant the executor legal title to all your assets from the moment of death.

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What happens when things go wrong - Trustee liability for the actions of co-trustees

Created: Friday, 01 February 2013 22:15

A recent Court of Appeal case has highlighted and reaffirmed three aspects of trusteeship:

  1. A trustee is personally liable for trust debts;
  2. A trustee cannot delegate his/her trustee duties; and
  3. A trustee should ensure there is a system in place to ensure his/her co-trustees comply with their trustee obligations.

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Enduring Powers of Attorney

Created: Tuesday, 01 January 2013 22:53

Enduring powers of attorney (EPA) may be used to cover situations in which a person does not have the ability to manage his or her own affairs.

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Residential Care Subsidies - Government Policy Change

Created: Monday, 02 July 2012 22:00

The Government has recently announced a policy change for applicants to qualify for the residential care subsidy. Under the previous policy the monetary threshold for assets that could be held and still qualify for the subsidy increased by $10,000 in July each year. The recent announcement is to the effect that from July 2012 annual increases will in future be based on increases in the consumer price index.

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Trust Duties - It Pays to Know the Trust Assets

Created: Friday, 01 June 2012 22:06

One of the first duties a trustee has on taking up a trusteeship is to become familiar with the assets of the trust, looking at both what the assets are and their condition or state. It is a duty that may be overlooked when assets owned by the settlor of the trust are transferred to the trustees, sometimes to their detriment.

Trustees are personally liable when acting as a trustee. The exception to this is when trustee liability is specifically limited. Such limitation is normally limited to independent trustees. When entering into contracts or other obligations, trustees must ascertain what obligations and liabilities they are taking on before signing documents. Typically, trustees should take steps to limit their liability under the contract to the assets of the trust.

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