(REFERENCE OFF-001A)...

Transcription

1 THE JOHN DOE FAMILY TRUST (REFERENCE OFF-001A) Countrywide Tax & Trust Corporation Ltd Abbotsfield House, 43 High Street Kenilworth, Warwickshire CV8 1RU Tel: wwwcountrywidegroupcouk

2 THE JOHN DOE FAMILY TRUST DECLARATION OF TRUST This Declaration of Trust is made this day of 20 BETWEEN the Settlor of JOHN DOE 43 Any Street, Any Village, Any Town AT1 1AA and Trustee No: 1 JOHN DOE of 43 Any Street, Any Village, Any Town AT1 1AA and Trustee No: 2 JANE DOE of 43 Any Street, Any Village, Any Town AT1 1AA and Trustee No: 3 of COUNTRYWIDE TAX & TRUST CORPORATION LTD Abbotsfield House, 43 High Street Kenilworth, Warwickshire CV8 1RU (the Trustees) WHEREAS The Settlor wishes to make this irrevocable settlement and has transferred to the trustees the sum of 10 (de minimus) From time to time further monies or property may be paid or transferred to the trustees by way of addition Such sums or property are hereinafter referred to as the Trust Property Regarding the settlement of the trust NOW THIS DEED WITNESSES THAT the trustees shall hold the Trust Property on trust for such of the beneficiaries in Section A below in such shares and in such manner as the trustees (being at least two in number) shall in their absolute discretion appoint by deed or deeds revocable or irrevocable and executed at any time within 125 years from the date of this settlement Defines the trust, its perpetuity period and its property

3 Section A - Potential Beneficiaries JANE DOE MY CHILDREN The ISSUE and REMOTER ISSUE of MY CHILDREN Plus any other persons I during my lifetime later nominate in writing to the trustees and after my death other persons nominated by the trustees with the exception of myself, the settlor JOHN DOE Any monies liable to be invested hereunder may be invested in any manner the trustees in their absolute discretion think fit The trustees have the power to invest trust assets on behalf of the beneficiaries Section 31 of the Trustee Act 1925 or if applicable section 32 of the Trustee Act (Northern Ireland) 1958 shall not apply to this settlement This is specifically to do with accumulating monies for minors, so doesn t apply The trustees may at their discretion lend to any one or more of the beneficiaries such amounts on such terms as to interest and security (if any) as they think fit It s a discretionary trust so that s defined here The statutory powers of advancement contained in section 32 of the Trustee Act 1925 or if applicable section 33 of the Trustee Act (Northern Ireland) 1958 shall apply to this settlement with the omission in proviso (a) to sub section (1) of the words one-half of" Outlines trustees powers to distribute assets Is discretionary so the one half of doesn t apply Any trustee for the time being (other than the settlor) being a solicitor or other person engaged in any profession or business shall be entitled to charge and be paid all usual professional or other charges for business done by him/her in relation to this settlement Standard charging clause The settlor has power to remove any trustee and appoint new or additional trustees Self explanatory! After the death, or the loss of mental capacity of the settlor the trustees shall have the power to appoint new or additional trustees Self explanatory!

4 OVERRIDING POWERS additional to the standard powers The Trustees shall have the following powers ( Overriding Powers ): a) Power of Appointment i) The Trustees may appoint that they shall hold any Trust Property for the benefit of any Beneficiaries, on such terms as the Trustees think fit That is what trustees are obliged to do under their absolute discretion ii) An appointment may create any provisions and in particular: 1 discretionary trusts; 2 dispositive or administrative powers; exercisable by any Person Trustees have the power to acquire and dispose of trust property for the benefit of the beneficiaries iii) An Appointment shall be made by deed and may be revocable or irrevocable Trustees would decide the best course of action, generally revocable appointments would be more flexible b) Transfer of Trust Property to other settlement i) The Trustees may by deed declare that they hold any Trust Property on trust to transfer it to trustees of another settlement, wherever established, to hold on the terms of that settlement, freed and released from the terms of this Settlement Many trusts don t have this provision It allows trust to trust distributions, to extend the life of the trust for example, or gift to mitigate taxation on larger estates after death ii) The Trustees shall only exercise this power if: 1 every Person who may benefit is (or would if living be) a Beneficiary; or Self explanatory! 2 with the consent in writing of two Beneficiaries Self explanatory! c) Power of advancement The Trustees may pay or apply any Trust Property for the advancement or benefit of any Beneficiary Self explanatory! d) The Overriding Powers shall be exercisable only i) during the Trust period; and Self explanatory!

5 ii) at a time when there are at least two Trustees, or the Trustee is a company carrying on a business which consists of or includes the management of trusts, or when the power to appoint additional Trustees cannot be exercised Hence the need for at least 2 trustees to be appointed or professionals such as CW as we are a Trust & Tax Corp It is hereby certified that this deed falls within category L of the schedule to the Stamp Duty (Exempt Instruments) Regulations 1987 exempt from paying stamp duty The Law of England and Wales applies to this Trust

6 Signed and delivered as a deed by the Settlor JOHN DOE Signature of witness Name and address of witness Signed and delivered as a deed by the Trustee JOHN DOE Signature of witness Name and address of witness Signed and delivered as a deed by the Trustee JANE DOE Signature of witness Name and address of witness Signed and delivered as a deed by the Trustee COUNTRYWIDE TAX & TRUST CORPORATION LTD Signature of witness Name and address of witness

7 MEMORANDUM OF WISHES This is a confidential document from myself, the settlor, to the trustees of THE JOHN DOE FAMILY TRUST I appreciate that I cannot fetter your discretion in any way, but I set out below the guidelines which I would wish you to adopt in managing and distributing any assets held within the Trust after my death: settlors wishes are not binding on the trustees but the trustees should take them into consideration when managing the trust The Trust was set up to give you as trustees the power to utilise the Trust Fund in such shares and on such terms and conditions as you may decide, which will allow you to take into account financial, tax and family circumstances in the years to come in the administration and distribution of the Trust Fund Self explanatory! In order to achieve these aims and to ensure that the Trust Fund remains for future generations, then I would like the trustees to consider the use of loans from the Trust (either secured or unsecured as appropriate) in preference to absolute distribution or for the trust to buy assets for the use or benefit of intended beneficiaries in whole or in part Loans retain the trust assets for the bloodline and prevent risk from MAD, divorce, care, creditor claims First Priority The first priority of the trustees is to ensure my wife JANE DOE is adequately provided for Only if my wife s present and future needs have been fully provided for would I want you to consider the needs of other beneficiaries Utilising funds for Children I would ask the trustees to treat MY CHILDREN with broadly equal shares but if any of them shall die when assets remain in the trust leaving issue of their own then I would prefer that the share or shares of any deceased children shall be shared equally between their surviving issue and remoter issue in that family Funds for Education If any beneficiary to whom you are considering appointing a share of the Trust Fund is either in education or training, I would like you to consider funding this education or training from the Trust Fund Funds for Medical Treatment If any of my beneficiaries needs critical medical treatment I would like you to consider funding this medical treatment from the Trust Fund Reserve Beneficiaries In the event that I and all my beneficiaries, specified in Section A, have died at a time when funds remain in the Trust Fund undistributed, I would wish you to exercise your

8 powers in relation to the Trust Fund to pay the remaining funds in the following percentage shares: 50% to my brother JAMES DOE 50% to my sister-in-law JOAN SMITH And in substitution to their issue and remoter issue should any of the above beneficiaries in this clause die whilst funds remain in the trust Substitute Trustees In the event of my own and/or my spouse's death, please appoint: my brother JAMES DOE of Any House, Any Estate, Any Town AT2 2AA to act as trustee(s) along with Countrywide Tax & Trust Corporation Ltd Signed by the settlor JOHN DOE Signature Date