Insurance Covers

You can remove the current trustees or appoint new trustees. The settlor may remove a trustee with at least 30 days written notice. As long as there are still two trustees, one of whom is not the settlor, they are permitted to do this.
What is a trustee supposed to do?

The trustee is supposed:

• To put the trust fund to use.
• If each beneficiary receives a distinct benefit, act impartially.
• Trustees may assign someone else the responsibility for managing and investing their funds.
• Should seek out and take into account appropriate counsel before using investment authority.
• To protect the trust’s assets.
• Should maintain records of all decisions and acts since they might need to show they are appropriately administering the trust money.
• Not to benefit themselves personally from the trust. The trustee is not allowed to use their position and power to get any advantage if they are also a beneficiary.

Unless they are partners or shareholders, your client’s spouse should not be included as a beneficiary under the business trust. Any business protection agreement must be put into entirely on a commercial basis. The presence of individuals who are not also the company’s proprietors would indicate that this is not the case. The results of this may be adverse tax effects.

No. If your client could do this, the trust would not affect inheritance tax purposes.

The trustees will always get payment of any funds from the protection plan. The trustees are then in charge of disbursing the funds to the beneficiaries, but they must first complete the “Deed of Appointment to Benefit (Absolute)” form.