Following a subscriber request, we have added a new precedent to our Unit Trusts Guide, being a Deed of termination of trust.

There are many reasons a client may wish to terminate or dissolve a trust prior to the vesting date. There are also several methods of bringing a trust to an early end including:

• complete distribution of the trust property by the trustee;
• revocation by the settlor or trustee;
• the beneficiaries or unit holders consent to end the trust; and
• a Court ordered termination of trust.

When brining a trust to an end there are many important issues for the trustee to consider including:

• the procedures prescribed by the original trust deed;
• all possible creditors; and
• all possible taxation consequences – particularly CGT arising from the sale of any trust assets or in specie distributions.

The need for a deed confirming the termination of the trust was suggested by one of our subscribers. Having considered the issue, By Lawyers have created a simple new precedent Deed poll, terminating the trust. This will allow practitioners to ensure that when their trustee clients terminate a trust it is evidenced and supported by proper documentation.

At By Lawyers we are always grateful for any feedback on our precedents and will happily accommodate subscriber requests for new documents where appropriate.