Changing Trustees

Hi Everyone

I have a Trust with me and my wife as Trustees. I was thinking to change it so that I was sole trustee. It is a hasle when purchasing things that we both have to purchase as trustees for 'The Husband Family Trust'. Also for loan serviceabilty, having just one on the loan means that I can borrow for other properties in my wife's name (new trust maybe)

Anyway, I was just wondering how this would effect my current borrowings. If she is no longer a trustee, but still has a loan in her name. I assume we have to tell the banks. Is it better just to set up a new trust?

Thanks for your insights.

TH
 
Originally posted by The_Husband
Hi Everyone

I have a Trust with me and my wife as Trustees. I was thinking to change it so that I was sole trustee. It is a hasle when purchasing things that we both have to purchase as trustees for 'The Husband Family Trust'. Also for loan serviceabilty, having just one on the loan means that I can borrow for other properties in my wife's name (new trust maybe)

Anyway, I was just wondering how this would effect my current borrowings. If she is no longer a trustee, but still has a loan in her name. I assume we have to tell the banks. Is it better just to set up a new trust?

Thanks for your insights.

TH
HI

It is easy to change trustee, although, it is something that you would be wise to discuss with your solictor to get the paperwork right.

Any existing investments will have to be noted and perhaps even have the ownership changed.

Yes, you should notify the banks that your wide is no longer a trustee and respectfully ask them to change their loan documentation to reflect that facts. I'm not sure how successful this will be, but, it is worth a try.

Have fun

Dale
 
TH,

I don't understand the hassle. Can't you just get TW to sign a bit of paper saying she authorises you to act in the interests of the trust on her behalf?

Or is it the actual loan and financing stuff you mean?

Bob
 
Yes, you should notify the banks that your wide is no longer a trustee
Well, I assume that is NOY a Freudian slip, and you mean "your wie"

I would imagine that you might have troubles getting your wife to sign it.

"Love, please give me complete discretion over all our finances. If anything ever happens (and it won't, because I love you), Just sign here so that I control the company trust finances, and you don't have any say in the allocation of money from the family trsut, because I will now be the sole trustee of all our investments. But remember that I love you completely."
 
Oooops!!!

Guilty as charged your honour and I throw myself at the mercy of the court.

Geoff, you mean YOUR wife doesn't sign where and when she's told? Geez mate, you'll have to improve her training.
:D

Seriously, not everyone wants to be trustee an dmany would like the chance to be relieved of duty. Moreover, as part of a well planned strategy it might just make more sense to have one rather than both, and finally . . . the person with the real power is the Appointor or Guardian of the trust who can just sack the trustee whenever he or she likes and with or without the trustee's consent.

So, Mrs XXX can happily resign as trustee and still retain ALL the power.

Have fun

Dale
 
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