Amendments / updates to an existing Trust Deed

Trusts Discussion
1

I have a slightly unusual case where I have been shown a Declaration of Trust signed in the 1950’s and made between the Trustees of two separate sports clubs for the use of an area of land for the benefit of both clubs.

In the 1960’s one of the clubs disbanded and no longer exists whereas the other club continues to this day.

The current club is wanting to retire and appoints new Trustees and has enquired about whether amendments also need to be made to the original Trust Deed to reflect the fact that the other club as an original party to the Trust disbanded several decades ago. I am unsure whether a new Trust Deed can or should be signed for this, whether some form of variation should be signed or whether no formal action needs to be taken at all other than perhaps some form of Trustee resolution and making reference to the current position in the recitals of any subsequent Deeds signed by the Trustees.

My current thinking is that perhaps no action needs to be taken, as the original Trust Deed still applies and evidence of the other clubs disbanding should perhaps just be kept with the Trust’s records. Just wondering what other peoples thoughts and whether anyone would suggest a different course of action?

Many thanks

2

I’m inclined to suggest counsel be consulted.

The trust will be subject to the pre-1964 perpetuity rules, and the trust property will need to vest absolutely at the end of the perpetuity period (expiring in the 2030s?).

Some agreements of this type I have seen vest the property in the members at the date the perpetuity period expires, and others in the members at the date of the trust deed. If this is similar to either, doing nothing many just be storing up more problems (and costs) for the trustees at the end of the trust period, especially if they need to identify who the members were many years ago, and who is now entitled to those members’ estate.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

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