You may also need to have a relationship property agreement if relationship property is being transferred to the trust.
The transfer of a house or land to the trust will also require further legal documents to register the change of ownership; it may also be necessary to prepare and register new mortgage documents. If a sale and gifting programme is needed (see page 16) this will require a number of different documents.
Your new Will should include provisions about:
It’s also a good idea to sign a Letter of Wishes when the trust is established. This sets out in detail your actual intentions for the trust and, in particular, it covers things such as:
A Letter of Wishes provides useful guidance for the trustees who will operate the trust after your death. However, it’s not binding on the trustees.
The letter can be updated at any time by you as settlor.
You should also sign Enduring Powers of Attorney (EPAs) covering both your personal property, and your personal care and welfare. These documents give a third person, the attorney, the power to act on your behalf.
An EPA in relation to Property can cover all of your personal assets which include any land and buildings that you own as well as bank accounts, vehicles and any other form of personal property. You can say when the EPA is to take effect, which could be at any time, or only if you become incapacitated, mentally incapable or if you travel or move overseas.
A property attorney may be a person such as your spouse or partner, friend or your lawyer, or one of the five recognised trustee corporations.
For the EPA in relation to Personal Care and Welfare, you would generally appoint a close family member or a friend as attorney. An organisation cannot be appointed to this position. This type of EPA can only be used if you become mentally incapable of looking after your own personal care and welfare.
Your attorney can ensure your medical, dental and residential needs are taken care of.
Your lawyer may also recommend that you sign a document to delegate your role as trustee (usually called a Deed of Delegation and Power of Attorney). This will state who can sign documents on your behalf if you’re overseas or physically incapacitated. It cannot be used in the event of mental incapacity. An EPA cannot be used in respect of a trustee’s role.