Resolution Format For Trust In Pennsylvania
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FAQ
Quote from the STSM Act: PMR 11(2) The trustees may by written resolution set the dates of and a standard agenda for their future meetings and delivery of a copy of this resolution is considered adequate notice of all such future meetings.
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.
An ordinance is a local law of general or permanent nature. An ordinance stays on the books until it is amended or repealed by another ordinance enacted by a later board or council. A resolution is an official statement of the will of the governing body.
A noncharitable irrevocable trust may be terminated upon consent of all the beneficiaries only if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
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.
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".
