Keeping trustees on track
One challenge for trustees serving across many trusts, is being able to quickly access an accurate high-level overview or context for each trust in which they serve.
Experienced trustees recognise that each trust deed has its own wrinkles and potential fishhooks. It takes time to keep acquainted with the context, parties, property and key terms of a trust.
To stay on track and overcome this problem, I recommend a Trust Position Summary (or TPS).
Investing time in preparing a TPS pays off – not only from your own perspective, but also for any co-trustees you work with. It becomes the starting place to get a quick summary or overview.
So what are the advantages of a Trust Position Summary?
The document is useful:
As a reference point for decision making, or annual reviews
For recording agreements and understandings between trustees
For documenting trustee policies and how things work
For inducting new trustees or trust administrators
To educate beneficiaries on trustee roles and responsibilities
As with any document, a TPS needs to be kept up to date as circumstances can change. That said, after the initial investment of time, maintaining it is generally easy.
What sorts of things might go into a Trust Position Summary?
Some of the things you could consider include:
The Parties – trust creators, trustees, beneficiaries, advisory trustees, advisers
A precis of the trust deed and rules for decision making
The trust purposes and a summary of the trust creator wishes
Recording trust property, insurances, tenancies, key dates, etc
Trustee policies for administration, investment or distribution
Trustee protocols and practices for decision making
The very process of documenting a TPS quickly identifies gaps, issues and concerns. These present as wonderful opportunities to engage with the various parties to the trust.
Trust good practice.
Lindsay