Emily Pritchard answers your burning questions relating to duty and the establishment of trusts. […]
Settling Trusts Under Power of Attorney
Stephen Harvey, current as of: 9 June 2011.
Many of you would be aware that Acis establishes new trusts in a variety of ways, but perhaps you have not yet considered the advantages of using our unique Power of Attorney service to do so.
The system is straight forward and works like this:
a) Acis Settlements Pty Ltd, acts as the Settlor of the trust, if desired, and signs the trust deed in that capacity. Acis Settlements Pty Ltd provides the settlement sum of $10. This sum is not reimbursed by the trust, or your client, to Acis Settlements Pty Ltd;
b) The proposed trustee provides Acis Nominees Pty Ltd with a simple power of attorney, authorising the execution of the trust deed, on the trustees behalf, and the receipt of the settlement The power of attorney is strictly limited to those functions, and does not authorise Acis Nominees Pty Ltd to act in any other way;
c) Acis Nominees Pty Ltd then signs the trust deed and acknowledges receipt of the settlement sum, from the Settlor.
A full signed copy of the trust deed is then available in our Document Depot, and can be easily accessed using our website.
This process reduces or eliminates the risk of technical failure of the trust, by ensuring that all legal formalities for the formation of the trust are carried out, prior to the delivery of the relevant documentation to you, including:
- the proper execution of the trust deed;
- the payment of the settlement sum by the Settlor of the Trust;
- the receipt and the acknowledgement of receipt of the settlement sum by the Trustee.
Specifically, our service eliminates these risks:
- If a trust deed is not signed properly, this casts significant doubt on the validity of the trust;
- If the Settlement Sum is never paid or is expensed back to the trust, this, too, casts significant doubt on the validity of the trust.
We have established many thousands of trusts using this method over more than 20 years.
The best part is your client only needs to sign a single 1 page document and we take it from there. The new trust is completed same-day and we even handle the scanning for you.
If you would like further information or have any questions, please contact us on 1800 773 477 or email email@example.com.