Trusts: Documenting Decisions
As discussed in a previous blog post, the trustees of a trust make all decisions with respect to the trust and the property held by the trust, within the parameters of the trust settlement, keeping in mind that the trustees must act in the best interests of the beneficiaries at all times.
All material decisions of the trustees should be documented by either minutes of meetings of the trustees, or resolutions of the trustees. Written records are often requested in the context of tax audits of a trust, and can also be invaluable for purposes of recalling, explaining or justifying decisions of the trustees, sometimes long after the fact.
If you have further questions about trusts or any tax planning initiatives, please contact us.