Having a trust deed in place before establishing a trust is crucial for several reasons:
- Legal framework: It provides a clear legal framework that defines the trust’s purpose, terms, and conditions.
- Clarity and certainty: It ensures that all parties involved understand their rights, responsibilities, and expectations.
- Conflict resolution: It helps prevent disputes by clearly outlining the roles and duties of trustees and the rights of beneficiaries.
- Asset protection: It safeguards the trust assets by detailing how they should be managed and distributed.
- Regulatory compliance: It ensures the trust complies with relevant laws and regulations from the outset.
- Effective administration: It facilitates the efficient and effective administration of the trust by providing clear guidelines and instructions.