I would like to change the number of trustees in a family trust, from two trustees to one (note that the trust deed does allow changes to the deed).

I'm not sure about the procedure. Can this be done simply through a trust meeting and writing a trust minute, or does it need to be witnessed and signed by a solicitor and a new certified copy of the trust deed made?

Thanks in advance.

bigwoof - 2021-02-02 15:03:00

What is your standing in the Trust?

johnston - 2021-02-02 15:16:00

If the Trust Deed does not allow removal of trustees then it is possible but you cannot do it by simply having a meeting.

Does the Deed allow modification?

johnston - 2021-02-02 15:19:00

Just ask the lawyer anyway if they are going to sign and table changes. Thats the easiest.

msigg - 2021-02-02 15:37:00

johnston wrote:

What is your standing in the Trust?

Thanks for the reply.

I'm a trustee (and one of the beneficiaries).
The Settler was another trust (I was one of the trustees of the Settler trust).
The Trust originally had two trustees (myself and one other) when it was formed.
There are three beneficiaries, including myself.

The second Trustee resigned (ill health), and a limited liability company became the other Trustee (I was the Director of the LLC). This was done with resignation letters and then through Trust minutes.
The LLC has now ceased to exist, so I am in reality the only Trustee.
I now live overseas.

bigwoof - 2021-02-02 16:10:00

johnston wrote:

If the Trust Deed does not allow removal of trustees then it is possible but you cannot do it by simply having a meeting.

Does the Deed allow modification?

Thanks again.

Yes, the Trust Deed allows modifiations.

bigwoof - 2021-02-02 16:10:00

msigg wrote:

Just ask the lawyer anyway if they are going to sign and table changes. Thats the easiest.

Thank you for answering. There is a slight problem in that I now live overseas. It's a bit more difficult now with Covid-19 causing problems.
So I'm trying to find out what my options are first.

bigwoof - 2021-02-02 16:14:00

I'd be asking these guys as it's what they do www.nztrustees.co.nz

jeffqv - 2021-02-02 16:19:00

jeffqv wrote:

I'd be asking these guys as it's what they do www.nztrustees.co.nz

Thanks. Have you used them or heard them recommended?

bigwoof - 2021-02-02 16:32:00

bigwoof wrote:

Thanks again.

Yes, the Trust Deed allows modifiations.

In simple terms the Deed should be modified to allow one trustee and then the appropriate retirement be made. There's a bit of process to follow but it's easily enough done.

Or if the Deed already allows one trustee, a meeting/resolution and a Deed of Retirement. Your lawyer can do it.

Edited by johnston at 4:35 pm, Tue 2 Feb

johnston - 2021-02-02 16:32:00

johnston wrote:

In simple terms the Deed should be modified to allow one trustee and then the appropriate retirement be made. There's a bit of process to follow but it's easily enough done.

Or if the Deed already allows one trustee, a meeting/resolution and a Deed of Retirement. Your lawyer can do it.

Thanks again. Very helpful.
One further question. As I'm overseas it's a bit difficult to see a lawyer in NZ. You wrote "Your lawyer can do it", but does a lawyer 'have' to do it by law?
Or could I sign the deeds myself as Trustee (even if I had a lawyer write it up?

bigwoof - 2021-02-02 16:44:00

bigwoof wrote:

Thanks. Have you used them or heard them recommended?

They act for me and my family.

jeffqv - 2021-02-02 17:17:00

jeffqv wrote:

They act for me and my family.

That's good to know. Cheers.

bigwoof - 2021-02-02 17:29:00

bigwoof wrote:

Thanks again. Very helpful.
One further question. As I'm overseas it's a bit difficult to see a lawyer in NZ. You wrote "Your lawyer can do it", but does a lawyer 'have' to do it by law?
Or could I sign the deeds myself as Trustee (even if I had a lawyer write it up?

If you know what you are doing and comply with the Deed then you can do it yourself. Sometimes though independent advice can be invaluable.

You don't actually need to see the lawyer.

Edited by johnston at 5:48 pm, Tue 2 Feb

johnston - 2021-02-02 17:48:00

johnston wrote:

If you know what you are doing and comply with the Deed then you can do it yourself. Sometimes though independent advice can be invaluable.

You don't actually need to see the lawyer.

Great, thanks for your help.
Good point on independent advice, too.

bigwoof - 2021-02-03 13:56:00