Trust admin questionnaire | Wakefields Lawyers

Wakefields Lawyers Advisor:*

Trust Name:*

Trustees:*

Trust Establishment Date*

Last Trust Administration Review Date*

Checklist Completion Date:*

The position of a trustee is an important one, and an annual (or more frequent, if necessary) review of the trust is essential if a trust is to provide the asset protection that it was set up to achieve. Case law shows that, where a trust is not properly administered, the Courts have been willing to ‘look behind’ the trust structure to attribute its wealth to the beneficiaries personally. This means that, if a trust is not administered properly, you may undermine any asset protection benefits of the trust

To help ensure a trust is being administered effectively, we have provided a non-exhaustive checklist for you and your fellow trustees to consider. Please take the time to go through this checklist, ensuring that you and your fellow trustees consider each of the matters raised. If you have any queries, we encourage you to contact us to discuss further.

TRUST DEED & OBJECTIVES

Trust Relevance*

Is the Trust still necessary?

Yes
No OR Not Sure - To be discussed at meeting

Trust Relevance - Comments

Trust Deed Review*

Does the Trust Deed still meet the needs and objectives of the Trust?

Yes
No OR Not Sure - To be discussed at meeting

Trust Deed Review - Comments

Review of Indemnity Clauses:*

Have the Trustee’s indemnity clauses been reviewed?

Yes
No OR Not Sure - To be discussed at meeting

Review of Indemnity Clauses - Comments

TRUST ASSETS

List of Trust Assets:*

Briefly list the assets of the Trust

Legal Transactions:*

Have all the Trust assets been legally purchased by or gifted to the Trust, and those transactions formally recorded (eg. by way of an Agreement for Sale & Purchase, Deed of Acknowledgement of Debt, Deed of Gift, etc)?

Yes
No OR Not Sure - To be discussed at meeting

Legal Transactions - Comments

Correct Ownership:*

Are all the Trust assets held in the names of all the Trustees?

Yes
No OR Not Sure - To be discussed at meeting

Correct Ownership - Comments

Funding of Acquisitions & Improvements:*

Have all property improvements and asset acquisitions made by the Trust been financed from the Trust's own funds?

Yes
No OR Not Sure - To be discussed at meeting

Funding of Acquisitions & Improvements - Comments

Insurance:*

Are all the Trust's assets adequately insured?

Yes
No OR Not Sure - To be discussed at meeting

Insurance - Comments

Sum Insured Review:*

If any Trust asset is covered by a 'sum insured policy', has the sum insured amount been reviewed to ensure there is adequate cover?

Yes
No - To be discussed at meeting
N/A - Have 'Full Replacement' cover in place

Sum Insured Review - Comments

SUPPORTING DOCUMENTS

Wishes of Settlor(s):*

Has a Memorandum, Letter or Expression of Wishes been executed by the Settlor(s) that reflects the current wishes of the Settlor(s) regarding the administration of the Trust?

Yes
No OR Not Sure - To be discussed at meeting

Wishes of Settlor(s) - Comments

Appointor Will:*

Does each Appointor have a Will that specifically provides for the delegation of their power of appointment & removal of Trustees on their death (ie. provides for transfer of control of the Trust)?

Yes
No OR Not Sure - To be discussed at meeting

Appointor Will - Comments

Settlor Will:*

Does each Settlor have a Will that specifically provides for the forgiveness of any debt owed to them by the Trust?

Yes
No OR Not Sure - To be discussed at meeting

Settlor Will - Comments

Trustee General Power of Attorney & Deed of Delegation:*

Has each Trustee granted a General Power of Attorney & Deed of Delegation to cover the performance of the Trustee's duties while they are outside of New Zealand or physically incapacitated?

Yes
No OR Not Sure - To be discussed at meeting

Trustee General Power of Attorney & Deed of Delegation - Comments

Settlor Enduring Powers of Attorney*

Has each Settlor granted an Enduring Power of Attorney in Relation To Property?

Yes
No OR Not Sure - To be discussed at meeting

Settlor Enduring Powers of Attorney*

Has each Settlor granted an Enduring Power of Attorney in Relation To Personal Care & Welfare?

Yes
No OR Not Sure - To be discussed at meeting

Trustee Settlor Enduring Powers of Attorney - Comments

TRUST DEBTS / GIFTS

Debts Status:*

Do you know the current outstanding balances of all debts owing by the Trust?

Yes
No OR Not Sure - To be discussed at meeting

Debts Status - Comments

Debt Documentation:*

Has all the Trust's debts been formally recorded (eg. by way of a Deed of Acknowledgement of Debt or Loan Agreement)?

Yes
No OR Not Sure - To be discussed at meeting

Debt Documentation - Comments

Forgiveness of Debt Documentation:*

Has every forgiveness (full or partial) of a Trust debt been formally recorded (eg. by way of a Deed of Forgiveness of Debt)?

Yes
No OR Not Sure - To be discussed at meeting

Forgiveness of Debt Documentation - Comments

TRUSTEES RESOLUTIONS / MINUTES / RECORDS

Trustees Meeting:*

Have the Trustees formally met in the last 12 months (or thereabouts) to review the general administration of the Trust (ie. held an annual Trustees meeting)?

Yes
No - To be discussed at meeting

Trustees Meeting - Comments

Trust Records:*

Are all records of the Trust safely & securely stored in an orderly manner in a readily accessible place known to all the Trustees?

Yes
No OR Not Sure - To be discussed at meeting

Trust Records - Comments

Complete Trustee's Minute Book:*

Have all decisions regarding the Trust and its assets (eg. property improvements and asset acquisitions/dispositions) been recorded in Trustees' Resolutions / Minutes (ie. is the Trustees' Minute Book complete and up-to-date)?

Yes
No OR Not Sure - To be discussed at meeting

Complete Trustee's Minute Book - Comments

ACCOUNTING, FINANCIAL STATEMENTS & TAX RETURNS

Solvency:*

Is the Trust currently solvent (ie. is it currently able to pay all debts as and when they fall due)?

Yes
No OR Not Sure - To be discussed at meeting

Solvency - Comments

Trust Bank Account:*

Does the Trust have its own separate bank account?

Yes
No - To be discussed at meeting

Trust Bank Account - Comments

Financial Review:*

Have all the Trustees reviewed all the Trust's bank statements, investment reports, financial statements, tax returns, etc?

Yes
No - To be discussed at meeting

Financial Review - Comments

Trust Accountant:*

Does the Trust have an accountant?

Yes
No - To be discussed at meeting

Trust Accountant - Comments

Financial Statements:*

If the Trust received income in the last financial year, have financial statements been prepared for the Turst and approved by all the Trustees, and has the Trust filed a tax return in respect of that income?

Yes
No To be discussed at meeting
N/A - No income was received in the last financial year (i.e. non-active)

Financial Statements - Comments

Financial Disclosure:*

Has disclosure of all relevant financial information, settlements, gifts and distributions been made to IRD in terms of its reporting requirements for domestic trusts for the last financial year (please confirm with accountant)?

Yes
No OR Not Sure - To be discussed at meeting
N/A - The Trust was non-active complying trust for the last financial year and was excused

Financial Disclosure - Comments

Non-Active Complying Trust Status*

If the Trust is a non-active complying trust (ie. doesn't derive any income), has it filed a formal Non-Active Complying Trust Declaration (IR633) with IRD?

Yes
No OR Not Sure - To be discussed at meeting
N/A - The Trust is active & derives income

Non-Active Complying Trust Status - Comments

BENEFICIARIES

Identification of Beneficiaries:*

Are the Beneficiaries of the Trust clearly identified or identifiable in terms of the Trust Deed?

Yes
No OR Not Sure - To be discussed at meeting

Identification of Beneficiaries - Comments

Review of Beneficiaries:*

Have the classes of Beneficiaries/named Beneficiaries in the Trust Deed been reviewed? In particular, should any Beneficiaries be excluded or added? Is it considered inappropriate of any of the beneficiaries to be entitled to require disclosure of Trust Information to them?

Yes
No Or Not Sure - To be discussed at meeting

Review of Beneficiaries - Comments

Consideration of Beneficiaries:*

Have the Trustees considered each Beneficiary's circumstances, need and any disabilities in the last financial year?

Yes
No Or Not Sure - To be discussed at meeting

Consideration of Beneficiaries - Comments

Trust Distributions:*

If there has been a Trust distribution to a Beneficiary in the last financial year, has this been authorised by way of a unanimous resolution of the Trustees, and the distribution paid or credited to the Beneficiary?

Yes
No OR Not Sure - To be discussed at meeting
N/A - No distributions made

Trust Distributions - Comments

No Distributions:*

If no distributions have been made in the last financial year, has this decision been recorded in a Trustees' Resolution / Minute?

Yes
No OR Not Sure - To be discussed at meeting
N/A - Distribution have been made in the last financial year

No Distributions - Comments

Trust Information Disclosure:*

Is there any disclosure of basic Trust Information required?

Yes OR Not Sure - To be discussed at meeting
No

Trust Information Disclosure - Comments

If you are 'Not Sure' about any field, we recommend you contact us to discuss further. It may be that the Trust has not been properly administered and, to ensure you benefit from the asset protection benefits of the Trust, these matters should be reviewed.

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Trust Administration Questionnaire - In Use