Welcome to the latest edition of It Depends. Today, we will be speaking about who should be the appointor of your trust.
What is the role of the appointor?
The appointor, sometimes called a guardian or principal, is the ultimate controller of the trust as the appointor has the power to remove or appoint trustees. It is not essential for a trust to have an appointor and not every trust deed will have one. However, it can be useful to have an appointor so that they can remove trustees in the event of death or insolvency.
Who should be the appointor of my trust?
It depends. It is an important consideration when setting up your trust who the appointor should be as the appointor is the person who has the ultimate control of your trust. For example, the appointor may be an existing trustee or named beneficiary of the trust. Sometimes an independent appointor is used to reduce the risk of individual beneficiaries being held to control the trust. Sometimes companies are also used as an appointor and if you are interested in this further, my colleague Steven Jell has previously done an It depends on this topic.
Cooper Grace Ward is a leading Australian law firm based in Brisbane.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.