For one reason or another, you may have purchased assets in the name of a Trust.
Often described as ‘Family’ Trusts, these Trusts usually have common features including:
- A Trust Deed (the rule book);
- A Trustee (the manager);
- An Appointor/Principal (the supervisor and controller); and
- Numerous potential Beneficiaries (to receive income and capital at the discretion of the Trustee).
When you pass away, the Trust does not “die” with you. The Trust continues and remains the owner of the assets in the Trust.
It is important to consider how ‘control’ of the Trust can be transferred to the person(s) who you trust to manage the Trust for the benefit of the beneficiaries after you’re gone.
As you don’t own the assets in the Trust, you cannot dictate who receives them through your Will.
The Trust Deed usually contains rules about how control of the Trust is transferred.
Sometimes, it requires you to include a clause in your Will (or a separate Deed) to transfer control to the right person(s) – usually by nominating a replacement Appointor/Principal.
Might be time to dust off your Trust rule book and ensure your Trust is dealt with in your estate plan?