Why it is unwise to ignore the advice of professionals
“Running your own family trust is easy, it’s like running your own bank account. You can run your own family trust and save the costs when you do it yourself !”
That is correct, and you can also service your own motorcar when you buy a manual and a few tools, or even do your own financial accounts for your business at the end of the year!
“Then why do few people actually do that themselves, and instead receive the support of professionals to do a proper job ?“
After assessment of your trust documents we give you a written guarantee each year, that we have assessed your financial and transactional records. We declare that we are satisfied that you have acted as a prudent trustee in your trust.
In fact we become your safeguard with our innovative Trust Yearbook . We like to give our trust clients the ultimate in trust service.
What is the process for supporting you in running your trust ?
First of all we ask you or your accountant to send us your last year’s financial statements for the trust. We extract valuable information from inspecting your trust financial accounts:
- It shows trends of expenses and income.
- It also reveals what has happened in the trust during the past year
- It becomes the basis for having a productive meeting with clients during which we first of explain the details of the accounts.
- We then ask the financial questions that every prudent trustee should ask themselves, and we record the answers in the Yearbook for the trust.
- We also see whether gifting or payments or loans to Beneficiaries of the trust has taken place, and then ask if the transactions are supported by proper Deeds of Appointment, Distribution or Acknowledgement of Debt.
What is the Yearbook for the trust ?
This document sets out details as follows:
- Who runs the trust – for whom – in what administrative fashion ?
- Which beneficiaries have been appointed and for what amounts ?
- What expenses are shown and which ones may cause concern ?
- What income is earned and how is that invested or paid out ?
- What is the investment policy of the trustees ?
- Which assets are in the trust and what are the liabilities ?
- What transactions or decisions have been made by trustees in the running of their trust, and how has this been recorded in trust resolutions ?
- Has the appointment of beneficiaries for receipt of funds taken place in the appropriate legal way in deeds of distribution of funds or asset transfers ?
- Has it been recorded that some beneficiaries are living in the residence which belongs to the trust and on what basis ?
End of year meeting for trustees
The Yearbook for the trust becomes the most important document of support to show that the trustees have done their job properly
- When you are a trustee then it is expected that are prudent. That is why we draft our yearbook only after we have looked at the year’s financial accounts for the trust.
- At a time which suits we then discuss or correspond with you about the details of the accounts or about your trust records, and what you wish to have dealt with adequately in Deeds , Resolutions and in your Yearbook.
- Then we record the details or transactions and send you the Yearbook for signing off by all trustees and for safekeeping by them. A digital record is kept for later use if required.
We are passionate about seeing that the trustees fulfil their duties, because we want your beneficiaries to get the best of your performance. We will assist you in that. Trustees should keep in mind that all important trust records must be kept for the lifetime of the trust ! (80 years)
Our yearly charge for our support in this, including perusal of accounts together with a trustee meeting, if required, and our Yearbook, with all Resolutions and Deeds costs $ 580. incl. GST.
Our full yearbook can also be ordered from us digitally or by landpost for $ 322.00 incl. GST if you wish to do the review yourself. You may then wish to copy it for following years, without infringing any copyright, and each year you can fill in your own trust details if that suits you better.