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Checklist - Terminating a Trust (If a beneficiary has requested the…
Checklist - Terminating a Trust
If a beneficiary has requested the termination of a trust and if the request has been accepted by the trustee, the initial procedures to be carried out by the TSP will include:
confirming that a written request has been received from the beneficiary(s) (or in some instances the need for the protectors consent) to terminate the trust;
obtaining the reason for termination;
ensuring the trust manager and their administration team is aware from the outset of the closing of the trust;
checking that the trust deed has the relevant revocation clause;
commencing closing checklists;
updating the records of the trust in the TSP’s computer data base to reflect the trust is closing.
The TSP will ensure that
a Deed of Retirement and Appointment/Termination (if applicable) is drafted and is executed by all parties concerned;
the trust assets, including any bank accounts, are distributed to beneficiaries or transferred to successor trustees;
sufficient funds are held back to cover outstanding closing or accounting fees;
closing accounts are prepared as at the relevant closing date.
The final matters to be concluded are
final fees are taken;
minutes are prepared noting the closure of any bank accounts and any asset transfer documents are executed;
original documents are removed from safe custody and archived if the trust is to be terminated or sent to the new trustees if the trust is to be transferred;
files are marked closed and placed in archive system;
any diary notes are cleared from the TSP’s computer data-base;
closing checklists are signed off in accordance with TSP’s procedures.