Many people may have a family trust and some people are acting as a trustee of their family trust. You may have heard that there were some law changes regarding family trust but not sure what are the changes and how the changes affect you and your family trust.
Since January 2021, the Trusts Act 2019 (Act) has come into force. As a trustee, the least you should know about this Act is that there are mandatory duties for a trustee to perform. They are listed in sections 22 to 27 and are not modifiable. Thus, a trustee must:
- know the terms of the trust
- act in accordance with the terms of the trust
- act honestly and in good faith
- act for the benefit of the beneficiaries
- exercise the trustee’s powers for a proper purpose
Remember, these are things you must do!
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