Trust Changes Ahead

November 26, 2019

in Trusts

“Times are a changing” and changes are afoot for Trusts under the new Trust Act 2019 (“the Act”).

The new Trusts Act 2019 will come into force on 30 January 2021 and it will impact existing trusts and new trusts.

As the New Year will soon be upon us it would be a good time to review your Trust including re-examine whether the reasons for your Trust are still valid.  Perhaps your Trust requires some variations or it may even be time to consider winding it up.

There will be mandatory and default duties created under the new Act and the mandatory duties will apply to all trusts from 31 January 2021 with these duties intended to lift the level of trustee conduct and responsibility.

Some of the notable changes in broad terms being:

  • all trustees will have a duty of care, duty to invest prudently etc and must keep core documents;
  • the presumption that trustees must disclose basic trust information to all beneficiaries ( including minors (to their guardians));
  • subject to the approval of the trustee, the beneficiaries may unanimously request a variation or resettlement of the trust;
  • options for removing and appointing trustees without going to Court;
  • introduction of mechanisms to resolve trust disputes;
  • increase of trust period from 80 years to 125 years

Some of  these may result in the Settlor’s loss of control over the Trust in the hands of future generations of beneficiaries.

This definitely will give Settlors and Trustees something to think about and we would suggest it would be a good time to review your trust over the coming months.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Karen Eason
03 477 8870

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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