Dominque Grubisa's Vesty trust System

[cu@thetop]

Life is full of Vesty situations!

Simple way is to have 2 entities. Entity 1 holds all assets and does not trade. Entity 2 is the coal face entity- contracts with 3rd parties including builders to develop entity 1's land. But no security offered by entity 1 over the assets. Preferably no personal guarantees either.

All goes bad only remedy against entity 2.

 

[Terry_w]

Why can't a beneficiary of a family trust lodge a caveat for a future benefit, just as they can as a beneficiary under a will.

And where would the caveat stand in relation to an existing mortgage, mortgagee's legal costs, agents fees in a mortgagee sale.

A beneficiary can lodge a caveat over property owned by a trustee. A beneficiary of a will cannot - except after death, a caveat can be lodged over probate - to prevent probate - not over property - well actually it could be over property held in the name of the executor or trustee as well.

a caveat woudn't prevent the first mortgage from taking possession and selling.

 

[cu@thetop]

A beneficiary can lodge a caveat over property owned by a trustee. A beneficiary of a will cannot - except after death, a caveat can be lodged over probate - to prevent probate - not over property - well actually it could be over property held in the name of the executor or trustee as well.

a caveat woudn't prevent the first mortgage from taking possession and selling.

Can this be done by a beneficiary under a discretionary trust with more than one beneficiary?

 

[Terry_w]

Can this be done by a beneficiary under a discretionary trust with more than one beneficiary?

Yes because as beneficiary they have an equitable interest in the property.

 

[cu@thetop]

Yes because as beneficiary they have an equitable interest in the property.

But a caveat would prevent a distribution of the property or operation of the trust in circumstances where the trustee wants to give to B , but A had caveated the land.

 

[Terry_w]

Yes it could but then would that beneficiary have a right to prevent trustee properly exercising powers? Probably no, subject to the deed.