Resolution Format For Trust In Nevada
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FAQ
Here are the requirements for a legal Trust: There must be clear intent to create a Trust by the Settlor. The Settlor must own property or assets to be transferred to the Trust at the time of its creation. The Trust must be created for legal purposes.
Even though a trust deed may allow decisions by majority vote, all trustees have to sign resolutions. It is not the majority vote but the resolution (signed by the entire complement of trustees) that binds a trust.
As the ATO succinctly defines them, trustee resolutions are "a checklist for trustees who wish to make beneficiaries presently entitled to trust income by way of making resolutions".
Before the end of each financial year, a trustee must prepare resolutions to distribute trust income. Failure to do so will generally result in default beneficiaries (as defined in the relevant trust deed) becoming entitled to that income or the trustee being assessed for that income.
As the ATO succinctly defines them, trustee resolutions are "a checklist for trustees who wish to make beneficiaries presently entitled to trust income by way of making resolutions".
The purpose of a trustee written resolution is to make and document a decision by the trustees without a meeting of the trustees taking place. Trust instruments generally do not prohibit trustees from documenting their decisions as written reso- lutions.
