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Don’t be tempted to help yourself to the money 17 May 2013

SOME clients continue to be too laid back when it comes to administering their trusts.

When you transfer money from your trust to yourself, how does anyone know what type of payment it is? Answer: It should be recorded in the minutes of a meeting and signed by all trustees before the money was taken. Was there such a minute?

If you take money out of your trust without the approval of all trustees, you’re treating the trust as though it was your own fund. Arguably, a trust might as well not exist at all.

You’ve set up a trust to protect assets. Why jeopardise it?

If getting all trustees to sign minutes is a hassle, reduce the number of trustees and make sure you choose trustees who are easy to reach when you want a minute signed.

 

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