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Trustees need to minute their decisions

IF you have a family trust, be fussy about recording trustees’ decisions.

One problem that arises is taking money out of the trust for your own use. This can be:

1      a reduction of money owing to you

2      a distribution of some of the trust income

3      a payment out of the capital of the trust

4      reimbursement for trust expenses paid by you

5      a beneficiary loan

It’s important to clarify these withdrawals. This is done by means of a trustee minute.

If there could be any doubt about the reason for a transaction, be sure to prepare a trustee minute and make sure all trustees sign it before it is actioned.