Chain of title - resigning trustee and appointing new trustees
Sean_Fernyhough
Member
This relates to a substantial death or earlier critical policy which has no investment element. Client's children are now adults and can act as trustees and the client wishes to do so. Current trustee (family friend) is amenable to resigning in light of our client's wishes. The end result will be more trustees and the trust is treated within the family.
Why does issues of a chain of title mean that the current trustee must resign a day before the adult children are appointed?
Comments
If you are changing the trustees of an existing trust, you would have one deed that retires the current trustee and appoints the replacement(s).
I have NEVER seen this done in successive days (where there is only one trustee to start with) and to my mind having 2 Deeds on different days is entirely pointless and also makes the drafting of the 2nd Deed more complex.
I think this is the usual insurance company nonsense, more clearly so when we're talking about a term assurance. 1) There's clarity about the trust's purpose and what the trust property is (will be upon successful claim). 2) There is no personal liability for outgoing trustees to be indemnified by incoming trustees.
@Sean_Fernyhough Which life office?
Phoenix Life
@Sean_Fernyhough
In my experience, Phoenix won't be much help when it comes to Trusts.
I am presuming you are looking for the necessary Deed to retire and appoint a trustee - is that right?
We have a properly drawn up one - by a solicitor - but this resigning and appointing on consecutive days is proving a problem and would require a re-writing of an already correctly drawn-up deed.
I dont see why this is a problem? Are Phoenix 'rejecting'? If they are request their legal reasons for doing so. If the answer is 'we don't think this works' point out that your client has legal advice and 'think' is not an appropriate response to trust related matters and in not accepting it, Phoenix appear to be providing legal advice.
In a nutshell that is what Phoenix is doing. Their letter to the client makes it clear that they are not accepting the appointment of additional trustees and insist that any resignation must predate the appointment of any further trustees. Perhaps they are acting upon a legal understanding but if so, it appears, the client is to figure out what that understanding is.
Have a double check of the deed to make sure there is nothing strange going on.