Signing a Management Agreement as a Trustee

Discussion in 'Legal Issues' started by Simpsons, 9th Jun, 2021.

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  1. Simpsons

    Simpsons Well-Known Member

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    When personal trustees of a trust holding a property are signing a management agreement with a property manager, do you have to disclose on the management agreement that you are trustees? Do you need to put the ABN of the trust on the agreement or can you just leave it blank?

    Eg. just list John & Jame Smith on the management agreement, not mention anything about being trustees or writing down the ABN of the trust? Does it make any difference?
     
    Simpsons, 9th Jun, 2021
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If it was commercial property its a major omission. If its residential property why would the trust even have a ABN ? Rental of resi property is not a enterprise. The ABN is that of the TRUST. I would argue declaring the trust on the agreement and lease are important factors. It helps avoid arguement later that there is no trust. Once named that John & Jane Smith ATF The Smith Family Trust then no further enquries are relevant and its private.

    The existence of a trust should not be a secret but the nature of the trust or information concerning it can remain private.
     
    Paul@PAS, 11th Jun, 2021
    #2