Family Trusts – Why you should hold an annual trustee meeting and what does that mean?



It is likely that at the time you set up your Family Trust, the lawyer acting for you would have recommended that the Trustees of the Trust hold an annual trustee meeting.

The purpose of the annual trustee meeting is to give the Trustees the opportunity to discuss all matters relating to the Trust’s assets and affairs.

Any decisions made at the annual trustee meeting can then be recorded in a Trustee resolution, which can be used as evidence, if the Trust’s validity was ever questioned.

Where a director of Pier Law, or a Pier Law Trustee Company, acts as a trustee of your Trust, we will be in touch regarding holding an annual trustee meeting, and will prepare all required documentation.

If Pier Law is not a trustee of your Trust, we are still happy to assist you with running the annual trustee meeting and preparing the required documentation. However, if you would prefer to run things yourself, keep reading for some hints and tips.

There is no specific wording needed for an annual trustees’ resolution – neither is there a particular agenda that would be suitable for all circumstances; the discussions required will depend on the complexity of the Trust. Some topics that may be relevant include:

  1. The assets held by the Trust – including bank accounts, property, shares, investment portfolios, classic cars.
  2. Whether the Trustees intend to retain ownership of all assets in the next year.
  3. Where a Trust owns a rental property – whether the property will continue to be rented out and if yes, on what basis. This includes the terms of a tenancy agreement and perhaps whether the Trust will engage a property manager.
  4. The liabilities of the Trust – including bank loans, personal loans, and guarantees.
  5. That all assets of the Trust are suitably insured (where appropriate) and that the Trustees are named on any insurance policy as the insured parties.
  6. The personal circumstances of each beneficiary and whether the Trust will make any distributions or loans to one or more beneficiaries in the next year.
  7. That the Settlors may continue to reside in the Trust’s property on the basis that they pay all outgoings in relation to the property.
  8. Whether the Trust will continue to engage the Trust’s lawyer and accountant for the following year.
  9. That any proposed transactions are in the best interests of the beneficiaries of the Trust.
  10. Approval of the Trust’s financial statements.
  11. Approval o f the Trust’s annual tax return or confirm that the Trust does not need to file a tax return and that IRD have been advised accordingly.

If you would like any assistance or further information, please contact us.