Bank Crackdown on Trusts

Banks are starting to become a great deal more stringent in their review of their customer’s Trust Deeds when finance is being applied for.

This was highlighted recently when a client was asked to provide a signed copy of the Deed for their Family Trust.

Such a situation raises several questions.

Do you have a copy of the Trust Deed
Has the Deed been signed and dated
Who has copies of the Deed and where are they kept

If it has been several years since the deed was drawn up, is it still fit for purpose or have there been any changes in circumstances that need to be dealt with e.g. adding or excluding beneficiaries or amending Trustee powers. In this case it is best to have a lawyer review the trust deed and draft a customised document.

It will depend on the situation of the Trust to decide what the most appropriate course of action is required.

In our client’s case, the deed was very old, and a copy could not be found. Following consultation with our adviser, the decision was made to set up a new trust and accompanying up-to-date deed.

If you have any queries or want any further information, please contact our office.