The Trustee Act 2000 contains a statutory obligation to ensure that trust assets are invested in an appropriate manner.
Trustees must ensure that trust investment portfolios are diversified, tax efficient and regularly reviewed.
The Trust Review Service provides trustees with a clear strategy for dealing with the implications of the acts and provide a structured approach to reviewing and documenting the trust assets.
Option 1: The New Trust: the trust overview
Every new trust should have a basic review to establish whether it falls within the requirements of the relevant Trustee Act. This service will provide recommendations as to what steps should be taken to ensure compliance with the relevant Act.
The purpose is to identify whether a detailed investment policy statement is required, and whether an investment specialist should be appointed to the trust to complete regular reviews of the trust assets.
The relatively low cost initial review can provide peace of mind to trustees and professionals by highlighting the key implications of the relevant Act and what steps, if any, should be taken next.
Option 2: The Established Trust: the suitability report
This is a detailed report analysing the existing investment policy statement and trust assets in relation to the relevant Trustee Act and the objectives of the trust as laid down in the trust deed.
The purpose is to identify whether the existing trust assets meet the objectives of the trust in relation to the Act and the current investment climate. The report will also note the current taxation legislation as it applies to the trust, the taxation position of current assets, review of asset performance against any established benchmarks, comment of the current diversification strategy and provide an overall summary of the current position of the trust.
Whether an investment policy statement has been established or not, this thorough review will highlight all outstanding requirements of the trust in relation to the relevant Act, and identify the key areas to review as priority.
Option 3: New and Established Trusts: the recommendations reports
This report will include recommendations for any amendments required to the existing investment policy statement. Along with a draft policy for trustees to adopt and detailed recommendations for the reallocation of assets to address any weaknesses in the existing investment portfolio. The report will also include a strategy for implementation of the recommendations and ongoing reviews.
This provides trustees with a compliant investment policy statement meeting the needs of the trust’s objectives, and detailed investment recommendations regarding suitable assets based on the trust’s objectives, income, capital requirements, and attitude to risk.
This service ensures that the trust and it’s supporting documentation is brought fully up to date in relation to the requirements of the relevant Act and that the investment portfolio accurately reflects the needs of the trust and it’s beneficiaries.
Option 4: Appointment as Financial Planner
Formally appointed by the Investment Delegation Statement and bound to comply with the terms of the Investment Policy statement, this service provides regular reviews of the Investment Policy Statement and trust assets, with recommendations on any alterations to the portfolio, as required.
The detailed ongoing services keeps trustees up to date with changes in legislation, investment work and regular reports on the progress of the trust’s assets in relation to the relevant Act and any agreed benchmarks as set in the Investment Policy Statement. The reviews will also recommend any changes to the portfolio to ensure that the assets of the trust continue to meet the changing needs to the trust’s own objectives.
A formal support relationship for trustees and professional advisers ensures ongoing compliance with the relevant act and a structured approach to investment management of trust assets.