During the administration of the trust, situations may arise where assets held or the terms of the trust no longer suit the needs of the beneficiaries. As a trustee you may need to look at restructuring the trust to ensure that it continues to provide for the beneficiaries as originally intended.
Situations that may call for a review or restructure of the trust can include when a beneficiary reaches a certain age and becomes entitled to their share of the trust fund, or following the death of a life tenant beneficiary.
Changes in trust or tax legislation can also affect the administration of the trust and it is important that trustees keep up to date with any changes, especially if they suspect that the trust under their control could be affected.
Before any alterations are made to the trust, or the investments held, it is important for the trustees to seek legal advice on their powers and obligations under the trust. Although it may seem straightforward to change aspects, the powers and terms of the trust should be carefully reviewed to make sure that the trustees have the necessary authority to make any changes.
Our trust lawyers are experienced in reviewing the terms of the trust and preparing the necessary documentation to ensure that you have met all of your obligations and can continue to deal with the trust fund.
We are on hand to advise you on all aspects concerning the restructure of trusts. We can explain all of the powers the trustees have under the terms of the trust, how changes can be made and we will highlight where potential problems may arise, before final decisions are made.
There are also various tax, compliance and reporting obligations imposed on trustees when dealing with any restructure or termination of a trust and it is important that as a trustee, you are fully aware of your obligations.