Are you a trustee of a trust? If so, it’s time to take a closer look at your trust in light of the changes brought about by the Trusts Act 2019 (“Act”).
While it may seem like a chore, reviewing your trust is essential for several reasons; ensuring that the trust remains effective, compliant, and serves its intended purpose.
The Act introduces new requirements and obligations for trustees, enhancing transparency and accountability within the trust administration process.
The Act imposes obligations on trustees to provide information to beneficiaries and keep them informed about the trust’s administration. This means trustees must maintain accurate records and be prepared to disclose information when requested.
If your trust has been operating under a veil of secrecy, now is the time to reassess its transparency practices.
A review allows trustees to assess the ongoing relevance and effectiveness of the trust structure in light of changing circumstances.
Over time, the needs and objectives of the settlor and beneficiaries may evolve, requiring adjustments to the trust deed or its administration.
By conducting a thorough review, trustees can identify any inconsistencies or gaps in the trust's provisions and take the right steps to address them.
Furthermore, reviewing the trust provides an opportunity to evaluate its financial performance and asset management strategies.
Trustees must ensure that trust assets are being managed prudently and in the best interests of the beneficiaries.
Assessing investment strategies, risk management practices, and compliance with legal and regulatory requirements can help trustees safeguard the trust's assets and optimise returns for beneficiaries.
Conducting a regular review of the trust demonstrates diligence and good governance on the part of the trustees. It fosters trust and confidence among beneficiaries and other stakeholders, reinforcing the integrity of the trust structure and its administration.
To navigate these changes and safeguard your trust, get in contact with Checketts McKay Law. Our expertise can guide you through the process, providing peace of mind and clarity around your trust. Trust in our experience to secure your trust’s future.