For more information, please refer to the instructions below:
In most cases, the Trust Deed will stipulate the vesting or termination date of the Trust. This is the date that the Trust will end.
The trust deed of the Trust will determine what needs to be done in relation to vesting the Trust. For example, the Trust Deed may direct that on the vesting date, the trustee is to end the Trust by distributing Trust property to particular beneficiaries or it may provide for the trustee to continue to hold the Trust property on Trust from this date for certain beneficiaries.
Tip: The vesting of the Trust does not always end the trust or create a new Trust. If the trustee is permitted by the Trust Deed to hold trust property for specified beneficiaries after the vesting date, the same underlying Trust relationship continues although the duties of the trustee will be changed. For example, the trustee will no longer have any discretionary powers to appoint income or capital after vesting.
It is always important to seek specialist legal advice, prior to vesting a Trust to make sure that there is no tax or duties implication on vesting. Prior to using this document, it is also important to consider the original Trust Deed, as well as each subsequent deed and instrument varying the terms of the Trust.
To start this process, you will need to click on ‘Deed of Vesting' under the 'Trust Rules & Vesting' heading.
A warning box will initially appear stating the importance of understanding any potential tax implications and the terms of the trust deed of the trust. You will need to acknowledge this warning before being able to proceed.
You will then be redirected to the relevant webform, to which the form will be pre-filled with the relevant data that has currently been added or imported into the trust profile of the trust. You will need to complete any data that has not been pre-filled. These data fields will be highlighted in pink. You cannot submit the webform until all relevant data fields have been completed.
Important: In relation to the ‘Trust’ webform, you will be asked the following questions:
- Date of establishment – This will be pre-filled if entered or input previously into the Trust Profile.
- 'Add date of variation' question. If you answer yes, you will need to enter the prior variation dates inclusive of the date of the most current Deed of Variation. If you answer no, no additional fields are required on this question.
If there are variation dates available for Trust, these dates will be listed on the tab as variation dates and can be removed by click on 'Remove' button available against each variation date.
- Jurisdiction. This will be prefilled if previously entered or input into the trust profile of the trust.
When you come to the ‘consenting party’ webform, you will be asked the following question:
'Is anyone required to consent to the vesting of the trust deed by the Trustee?' The answer to this question will be located in the current trust deed of the trust.
If the answer is ‘Yes’ to this question, a dropdown box will appear that will list the following options:
- Other - once selected, an additional 'Description of Consenting Party in the Deed' will appear so as to input the details manually.
In relation to the ‘Beneficiary’ webform, you will be asked the question on whom is to benefit from the remaining assets of the trust (both income and capital). This document assume that the remaining assets will be distributed to the beneficiaries nominated, in equal shares as tenants in common. If an unequal distribution is required, the deed will need to be amended to address that issue.
After submitting the details, the relevant documentation will appear on the ‘collaboration page’ i.e.:
- Deed of Vesting and Winding Up Ancillaries
- Deed of Vesting & Winding Up
- Information Flyer
- Legal Review Certificate
Once the ‘Deed of Vesting & Wind Up’ documents have been signed by the client, you will need to either change the status on the collaboration page (‘Paper signing’ option) or on the Trust Profile (Mark as Signed’ options).
Once this has been done, trust profile will then be updated with the vesting date and you will not be able to create any further documents for the trust.
The trust will be removed from the active list of trusts and will be added to the archived folder, available under 'Show' > 'Archived'.