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About Product
The LightYear Docs Deed of Ratification of Verbal Trust Distribution Minutes serves as a safeguard for Trustees of discretionary trusts who may have previously made trust distribution decisions verbally without formal documentation. This deed enables Trustees to rectify any oversight and provide a formal record of trust distribution decisions made in previous income years.
With this deed, Trustees can validate past trust distribution minutes, offering certainty and security to the trust structure. The deed is carefully crafted to comply with relevant legal requirements, ensuring that the Trustee and beneficiaries are protected from potential tax penalties due to the absence of formal trust distribution minutes.
► Provided under Strategist membership.
► The master document has been signed off by Abbott & Mourly and is congruent with Australian law.
General Information
The Deed of Ratification of Verbal Trust Distribution Minutes addresses the need for formal documentation in discretionary trusts. It allows Trustees to confirm and validate trust distribution decisions that may have been made verbally in any previous income year.
This deed is a valuable tool for Trustees seeking to regularise their trust distribution records and mitigate the risk of penalties. By ratifying the verbal trust distribution minutes, Trustees demonstrate their commitment to compliance and uphold the integrity of the trust.
It's essential to remember that formal trust distribution minutes are critical for discretionary trusts to maintain their eligibility for beneficial tax treatment. Without proper documentation, the Trustee may be exposed to a 45% penalty tax.
Benefits
- Easy to read and understand.
- Filled with fantastic strategies.
- Signed off by Abbott & Mourly.
- Ensures Compliance and Risk Mitigation.
- Provides Retrospective validation to trust distribution decisions
- Ensures the preservation of the Trust’s eligibility for beneficial tax treatment.
Frequently Asked Legal Questions
Is this document a legal document?
All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by Abbott & Mourly.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lightyeardocs.com.au.
What lawyers sign off on the LightYear Docs documents?
All LightYear documents are prepared and signed off by Abbott & Mourly from Melbourne, Sydney and Brisbane.
Are the LightYear Docs documents reviewed regularly?
All LightYear Docs documents form part of the LightYear Docs internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.
Why is the Deed of Ratification of Verbal Trust Distribution Minutes important for discretionary trusts?
The Deed of Ratification of Verbal Trust Distribution Minutes is crucial for discretionary trusts as it allows Trustees to formalise and validate trust distribution decisions made verbally in the past. Without formal documentation, the trust may be exposed to penalties and risks associated with incomplete records.
Can I use this deed to ratify trust distribution minutes from multiple income years?
Yes, this deed can be used to ratify trust distribution minutes from multiple income years. It provides a retrospective validation for all past verbal trust distribution decisions, ensuring compliance and certainty for the trust.
What are the potential consequences of not ratifying verbal trust distribution minutes?
Failing to ratify verbal trust distribution minutes may result in the trust being penalised with a 45% penalty tax. It could also lead to uncertainty and disputes among beneficiaries regarding past distributions.
Can the beneficiaries challenge the ratified trust distribution minutes?
Once the Deed of Ratification of Verbal Trust Distribution Minutes is executed, it provides legal validity to the trust distribution decisions. While challenges are possible, having formal documentation strengthens the Trustee's position and reduces the likelihood of disputes.
Can I use this deed for discretionary trusts in all Australian states and territories?
Yes, this deed is designed for use in all Australian states and territories, making it suitable for discretionary trusts nationwide.
How long does this document take to assemble?
Depending on the complexity of the data, this document should take approximately 5-10 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .