If you attended TEO's 'Trusts & Estates' course this year, below is course presenter Deane Purdue's handy trustee file guide.
Why? Because it assists in reinforcing the message that Mr and Mrs Kiwi (our co-trustees) need to disregard their other roles and meet with us as trustees not as:
• Parents
• Clients
• Trust donors
• Trust creditors
• Trust settlors
• Trust creators
• Beneficiaries
Some suggestions regarding the Trustees file:
Provide two folders as part of the trustee service fee
One folder bearing the marketing logo/livery/branding of the professional firm providing the professional independent trustees service and the words on the front and spine TRUSTEES FILE.
Clients should bring this folder with them to any trustees meeting, whether held at the clients business premises, residence, professional offices, coffee lounge etc.
Trustee meetings can be via telephone, email or even text messaging! These meetings should culminate in a recorded resolution either in a paper or electronic form.
This folder will need to be shared by Mr and Mrs Kiwi co-trustees but if a message needs to be given to either of these trustees that they cannot be passive, then it may be worth providing them each with a trustees file for their own use.
Note: This file must be brought to all trustees meetings – no exceptions!
The deeds of appointment /resignation of trustees, correspondence, past resolutions, previous financial statements etc – (this file could be larger e.g. Lever Arch file). This folder would not be brought to the trustees meetings.
The inclusion of certain documents needs a warning of Security and Confidentiality as some documents may be confidential and “for the eyes” of the trustees only and not the beneficiaries such as:
• Memorandum of wishes
• Resolutions
• Wills
• Correspondence
It is preferable that the co–trustees be given these files in person and not posted to them. Ideally a briefing session be convened at this time including any other trustees. The downside to providing these files is the risk of disclosure of confidential information to beneficiaries.
What to include in the current file! ...the ideal!
• Creator/Settlor indemnity once the professional trustee has agreed to accept the appointment or even sometime during the trusteeship – remember the trust funds may not exist or be insufficient when the professional trustee is in trouble
• The letter of engagement signed by the creators/settlors and co-trustees
• Agreements between trustees
• The Trust Deed signed and executed copy
• Important current legal documents e.g. guarantees
• The most recent annual and interim financial accounts (all the irrelevant notes excluded)
• Deed of acknowledgement and reduction of debt
• Copy of register of gifts and distributions
• The minutes/resolutions for the previous year
• Relevant “current” correspondence
• Family tree and birthdates
• Life assurance policies owned by the trust
• Insurance policies of assets owned by the trust
• Trust strategy plan
• Trust risk identification and management plan
The creator/settlor documents – to ensure re-evaluation
• The memorandum of wishes
• The creator/settlors wills – usually Mr and Mrs Kiwi
• The enduring powers of attorney – as above
• Life policies
• Medical directives
Separate co-trustee training
• Snippets from TEO books
• Recommended reading list
• Newsletter cuttings
• Letters to clients re important trust issues
Any queries?
If you are serious about Trusts & Estates then we urge you to keep your knowledge up-to-date. TEO offer some invaluable Trust material from past courses presented called Trustees Guide, Family Trust Accounting etc. For more information on click trust course titles or simply freephone TEO 0800 273 746.
Deane Purdue
CEO, Q&A Business
Email: qabusiness@xtra.co.nz
Direct Mobile: 0292-783-370 |
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