Appointing an "Appointor" later

Hi all

Speaking in general terms, regarding most "standard" trust bundles online such as cleardocs etc

Can the sole trustee of a trust appoint an "appointor/s" later in time when the trustee has more clarity regarding his circumstances?

What happens to the trust assets if the sole trustee dies / becomes incapacitated and there is no appointor?

 

i have written a legal tip on this very topic - not sure if I have posted it yet

 

Ah thanks Terry. Ive already done a big search of propertychat and could not find anything about the above though.

 

I will have a look, remind me tomorrow if I don't reply

 

Legal Tip 354: Discretionary Trusts without Appointors

 

May be signs of other issues when a DT has no appointor. eg Trustee is individual, beneficiary is individual, no appointor etc. Could destroy any asset protection. Possibly argue that there was no trust and so estate assets may include those of the trust. Trustee in bankruptcy claims etc. Often called "alter-ego" trusts. In such cases a "protector" type of deed may even be wise. The "protector" may be a independent person who may need to approve the appointor changes or addition etc.

Cleardocs has a cascading "no appointor" clause..... and I think its defective.

Appointment of trustee. The appointor may appoint an additional or replacement trustee at any time by a written statement to that effect.
If there is no appointor, the legal personal representative of the appointor ( added comment ; But there isnt one ?) may exercise this power. If there is no legal personal representative of the appointor, the first named beneficiary who is still alive may exercise that power.... Shouldnt that clause say ...If there is no surviving appointor ??

Appointor powers are the golden goose. Ensuring a specific person is appointor is very wise. You dont want to lose control of trust control and property. Michael Hutchence and his dodgy adviser is the lesson. Hutchence was "sold" on the merits of having a independent appointor....so the adviser exercised rights to change trustee and remove all control so beneficial trust property could vest to the adviser.

 

Hmm interesting. thanks terry and paul.

I guess ultimately i was considering having myself as the appointor (and trustee) but also add a "trusted family member" as the second appointor. I'm actually relatively young (<30) and not married and no medium term plans for children which just makes it so hard to think ahead...

I guess it's better to have two appointors (one myself) rather than no appointors.

 

Something to take legal advice on. You could always add a second appointor later.

 

Whats the purpose of the family trust and what would you put into it? Why individual trustee?

 

This is for the bucket company. There is a corporate trustee for the "business owning" entity.