Trust FAQS
What is the role of the Trustee?
The Trustee is:
- Said to own the legal interest in the trust property
- Under duty to act in good faith when dealing with trust property
- Personally liable in respect of all expenses involved with the administration of the trust
Who should be a Trustee?
A Trustee can be either an individual or company. In the case of individuals being the trustee, this person will normally be one of the specified beneficiaries of the trust. When a company is acting as Trustee, usually the director of the company is a specified beneficiary of the trust.
What is the Settlor?
The function of the Settlor is to give the initial assets to the trustee to hold on behalf of the trust's beneficiaries. Once the transfer of the asset (settled sum) is complete the trust is seen to be operational. There is generally no further involvement from the Settlor after this has taken place.
What is an Appointor? The person holding the power of appointment of the trustee.
This entity, either one or several individuals or a company, has the
ultimate control in the operation of the Trust. The function of the
Appointor is to “hire and fire” the Trustee of the Trust. However, the
appointment of the initial Trustee is made pursuant to the Deed of
Settlement and the Appointor has no power to make this first
appointment.
Who can be Specified Beneficiaries?
A Specified Beneficiary is a person(s) specifically named as a beneficiary of the trust.
The Trust Deed
This is the terms and conditions under which a trust operates. The deed is required to be signed by all interested parties of the trust fund.
If you any other questions about trusts please contact our office on 1300 722 796 or by email.
