Many clients who we assist with their estate planning have involvement in a Trust.
When the Trust is established, it comes with a ‘rule book’ known as the Trust Deed.
The rule book sets out important matters such as the Trustee, the Beneficiaries, distribution of income and capital, when the Trust ends etc.
It is important to review the current rule book to ensure matters regarding the Trust are effectively dealt with as part of the estate plan.
Many Trusts have a role called the Appointor or Principal. The rule book commonly states that the Appointor or Principal can kick out the Trustee at any time and appoint another Trustee. That is a powerful role (particularly when the Trusts often contain significant assets).
The rule book commonly has a clause dealing with who takes on the power of the Appointor or Principal if they lose capacity or pass away. The Appointor or Principal may even be able to nominate their replacement in their Will or by a Deed.
If you are involved in a Trust, make sure your estate plan addresses these matters so that you do not end up with trust issues down the track.