What is a trustee resolution?

A ‘resolution’ is a decision of the trustee made in accordance with a power available to it under the trust deed. A minute or written trustee’s resolution creates a record of that resolution. The resolution must be made by following the process that is set out in the trust deed.

Can trustees pass a resolution?

Can the trustees pass resolutions without a meeting? Yes. A resolution in writing is passed where it is signed by all of the trustees . The resolution may be circulated by email then signed, dated and returned by email or in hard copy.

How do you vest a unit trust?

How does the Unit Trust Vesting deed wind up a Unit Trust?

1. Distribute any capital that is left to the Unit Holders.
2. Build a Debt Forgiveness Deed to forgive loans owed to Unit Holders and related parties.
3. Your Accountant prepares any outstanding tax returns.
4. Build and sign both the Unit Trust Vesting deed and the minutes.

Is a unit trust a fixed trust?

A unit trust only qualifies as a fixed trust, when all unit holders have a fixed entitlement to all income and capital of the trust. As a result most unit trusts (even when referred to as a fixed trust) will not qualify as a fixed trust because something breaks the fixed entitlement to all income and capital.

What is a trustee determination?

A trustee simply resolves to distribute all of the trading income to a beneficiary. Depending on the wording of the particular trust deed, the result would be that some of the net (taxable) income of the trust would be assessed to the trustee or default beneficiaries.

What decisions can trustees make?

Decisions that can be done by the Trustees are appointing a managing agent, approving the consolidation of subdivision of sections, imposing fines for contraventions of the conduct rules etc. A majority of Trustees are members of the Body Corporate and they volunteer their services and time.

Can trustees vote by email?

Many governing documents will have a clause in them which allows for resolutions to be passed in writing or agreed electronic form. So, it may be that you can approve and decide on something as trustees through email. in a governing document.

Is unit trusts a good investment?

Unit trusts are a flexible, long-term investment Equity funds should be considered even longer-term investments, with an investment period of at least 10 years. A lump-sum investment in a unit trust may prove to be the most profitable over the medium to long term.

Can you distribute a loss from a unit trust?

A disadvantage of unit trusts, and trusts in general, is that they cannot distribute losses to the unitholders. Any losses incurred by the unit trust must be carried forward to be offset against future income.

What do you need to know about trustee resolutions?

Main navigation. Trustee resolutions This information is for trustees who wish to make beneficiaries of a trust presently entitled to trust income for an income year by way of making resolutions (including where in doing so they also want to make beneficiaries specifically entitled to franked dividends and capital gains included in that income).

What do you need to know about trust distribution resolutions?

A trustee will be required to have evidence that a distribution resolution was made before 30 June, and should be able to substantiate the fact.

Can a beneficiary of a trustee resolution disclaim their entitlement?

A beneficiary may disclaim an entitlement to trust income or capital arising from a resolution within a reasonable time of becoming aware of their entitlement. If a beneficiary has made a valid disclaimer, you (the trustee) may be assessed on a share of the trust’s net (taxable) income.

Can a trustee be removed from office in South Africa?

If trusts are not managed properly, trustees may be removed from office by the Master of the High court. A trustee is personally liable for breach of his or her fiduciary duties. Furthermore, non-residents may not be trustees of South African registered trusts. This is important to note where trustees decide to emigrate.