Can a discretionary trust have a corporate trustee?
Some benefits of having a corporate trustee for a discretionary trust include: Asset identification of the trust’s assets and personal assets is more straight forward. The director(s) of the trustee company are generally not personally liable for any reduction in the trust assets.
Can a trustee of a trust be a company?
There are several parties that make up a trust structure, each serving a different role. The ‘trustee’ is the person who distributes the trust’s assets to the beneficiaries. A trustee can be either a real person, known as an ‘individual trustee’, or a company, known as a ‘corporate trustee’.
What is a company trustee?
A corporate trustee must have a shareholder or shareholders and appoint directors to manage the trust and the distribution of assets to beneficiaries. The main benefits of having a corporate trustee in place are asset protection and limited liability.
Who owns a trustee company?
The directors and shareholders for the corporate trustee are generally the same persons involved in the main business, although their partners might be a shareholder as well.
Who can be a trustee of a discretionary trust?
WHO CAN I APPOINT AS A TRUSTEE? Generally anyone, but the people appointed must be over 18 years of age and of sound mind. The trustees should be people who the settlor believes will act in the best interests of the beneficiaries.
Can a company act as a trustee?
In general, any individual, company or other corporation may be appointed as a trustee.
Can a discretionary trust own a company?
A trust cannot own shares in a company because the law says a trust is not a separate legal person. Even so, the trustee of a trust, in his, her or its capacity as trustee, is capable of owning shares and other property – see next question.
Can a beneficiary of a discretionary trust be a trustee?
Can A Trustee Be A Beneficiary? Yes – although in the interests of the trust, it’s good practice to ensure: There’s no conflict of interest between someone’s role as a trustee and their position as beneficiary.
What are the responsibilities of a corporate trustee?
The corporate trustee is responsible for identifying all the trust property and maintaining, protecting and controlling trust property. The corporate trustee will invest and reinvest the trust property and exercise discretionary powers over both income and principal.
Is a trustee a legal owner?
The trustees are the legal owners of the assets held in a trust. Their role is to: deal with the assets according to the settlor’s wishes, as set out in the trust deed or their will. decide how to invest or use the trust’s assets.
