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Trust Settlement Agreement
"I need a Trust Settlement Agreement for a family discretionary trust to be established by March 2025, with provisions for multiple business assets and specific clauses for succession planning between three generations of family members."
1. Parties: Identifies the Settlor, Trustee(s), and any Appointor or Principal
2. Background: Sets out the context and intention to establish the trust
3. Definitions: Defines key terms used throughout the agreement
4. Declaration of Trust: Formal establishment of the trust and transfer of initial settlement sum
5. Trust Name and Type: Specifies the name of the trust and its classification (e.g., discretionary, unit, hybrid)
6. Beneficiaries: Defines primary and general beneficiaries and classes of beneficiaries
7. Trust Property: Describes how trust property is to be held and managed
8. Trustee Powers: Details the powers granted to trustees in managing the trust
9. Trustee Duties and Obligations: Outlines the responsibilities and obligations of trustees
10. Distribution of Income: Specifies how trust income is to be distributed among beneficiaries
11. Distribution of Capital: Outlines provisions for capital distributions
12. Trust Period: Defines the duration of the trust and vesting date
13. Amendment Provisions: Procedures for amending the trust deed
14. Governing Law: Specifies the jurisdiction and applicable law
15. Execution: Formal execution clauses and signing requirements
1. Appointor Provisions: Used when an appointor role is required to oversee trustee appointments and removals
2. Foreign Income Provisions: Required when the trust may receive foreign-sourced income
3. Business Operation Provisions: Included when the trust will conduct business activities
4. Investment Powers: Detailed investment guidelines when the trust has significant investment activities
5. Family Trust Election: Included when the trust will make a family trust election for tax purposes
6. Corporate Trustee Provisions: Specific provisions when a company acts as trustee
7. Perpetuity Period Extensions: Required in jurisdictions allowing extended perpetuity periods
8. Minor Beneficiary Provisions: Special provisions for handling distributions to minor beneficiaries
9. Charitable Purposes: Included when the trust has charitable components or purposes
10. Trust Resettlement Provisions: Guidelines for avoiding unintended resettlement of the trust
1. Schedule 1 - Initial Trust Property: Details of the settlement sum and any other initial trust assets
2. Schedule 2 - Named Beneficiaries: List of specifically named beneficiaries and their details
3. Schedule 3 - Trustee Remuneration: Details of trustee fees and reimbursement arrangements
4. Schedule 4 - Excluded Beneficiaries: List of persons specifically excluded from benefiting from the trust
5. Schedule 5 - Investment Powers: Detailed list of authorized investment types and restrictions
6. Appendix A - Trustee Meeting Procedures: Procedures for trustee meetings and decision-making
7. Appendix B - Distribution Rules: Detailed rules and procedures for making distributions
8. Appendix C - Compliance Checklist: Checklist of ongoing compliance requirements
Authors
Financial Services
Legal Services
Wealth Management
Real Estate
Family Business
Professional Services
Banking
Investment Management
Agriculture
Mining
Retail
Healthcare
Education
Legal
Trust Administration
Wealth Management
Tax Advisory
Compliance
Risk Management
Private Client Services
Estate Planning
Corporate Services
Investment Advisory
Financial Planning
Trust Lawyer
Estate Planning Attorney
Tax Advisor
Wealth Manager
Financial Planner
Trust Administrator
Corporate Trustee Officer
Legal Counsel
Tax Partner
Private Client Advisor
Family Office Manager
Trust Account Manager
Compliance Officer
Risk Manager
Property Manager
Investment Advisor
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