As an accountant, financial planner, or someone with your own trust, you may wonder what lawyers look for when changing an appointor/principal/guardian (Consenting Party) or how they go about it.

The process

The process involved in changing an appointor is as follows:

• review the trust deed and any previous amendments, changes of trustee, or changes of Consenting Party to ensure:

• all documents are legally valid and effective; and

• that you are dealing with the current version of the deed and relevant stakeholders;

• identify the clause(s) dealing with the resignation, retirement or succession of the Consenting Party and the appointment of a new Consenting Party;

• identify the process to effect the change of Consenting Party;

• identify the form of the required documentation, for example:

• by deed;

• resolution; or

• written statement.

Common reasons to change a Consenting Party

Consenting Parties are often changed for the following reasons:

• marriage (spouse added as co-Consenting Party);

• marital/relationship breakdown; and

• family succession.

Conclusion

It is common to change a Consenting Party to a trust deed to meet changing family circumstances and it is necessary to review the trust deed, identify the relevant process and prepare the required document in accordance with the trust deed.

If you or your clients need any assistance to change a Consenting Party, contact ineedachange@mosaictaxlegal.com.au.