There have been a number of updates of late in relation to both the governance and reporting requirements of Trusts as a result of the The Trust Act 2019, which puts Trustee duties into law. There are aspects of the Trust Act that we want to draw your attention to;
Mandatory and Default Trustee duties
Mandatory duties apply no matter what but the default duties can be modified.
Disclosure to beneficiaries
There are requirements to disclose details of the Trusts existence to beneficiaries and make basic information available creating greater transparency.
Retaining core documents
There is a requirement for the Trustees to retain core trust documents.
Additional Reporting Requirements to IRD
From 1 April 2022, many Trusts are now required to provide more information to the IRD relating to settlements, beneficiaries, and powers of appointment.
These requirements will not apply if your Trust is inactive or meets the minimum income threshold.
What does this mean for you?
If you are a Trustee you need to be aware of the duties set out in the Trust Act 2019.
If we are your Trustees we will be required to complete file reviews, deed reviews, look at the beneficiary disclosures, and be aware of and take part in all decisions relating to the Trust assets and investments and actively review these.
For the Trusts that must comply with the new IRD disclosure requirements, we will have to gather a lot of information from you and spend time completing the new IRD disclosure template.
This is merely an update on the changes taking place. Each case will be different, and we will be in contact with you as we work on each Trust file.