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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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What are the requirements by law for the trustees of a trust

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What are the requirements by law for the trustees of a trust fund which is winding up. This fund was set up by the owner of a company that operated in the town. The trust fund was set up to assist the youth of the town. The company is no longer in operation.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Was there a trsut deed signed for this trust fund?

Kind regards

AJ
Customer: replied 3 years ago.

Yes

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Is the trust fund solvent?

Kind regards

AJ
Customer: replied 3 years ago.

Yes.

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Can you confirm what the trust deed says about dissolving the trust?

Does the trust have any assets?

Kind regards

AJ
Customer: replied 3 years ago.

In the event of the capital of the Trust Fund having been applied entirely or substantially pursuant to direction of the trusteed under clause 2 hereof or if for any other reason it becomes desirable so to do the Trustees may (subject to any special direction attaching to any specific gift or endowment) wind up the charity and thereupon the Trustees shall hold all assets of the charity after payment of all costs, expenses and outgoings payable thereout upon Trust to pay the same to or apply the same for such charitable purposes, charitable institutions or charitable foundations in Northern Ireland in such a manner and in such shares and proportions as the Trustees shall in writing direct.

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

So as a starting point any assets that are left over will have to be applied firstly to pay any creditors of which there aren't any and secondly the remaining money must be paid to charities in Northern Ireland.

Are all the trustees in agreement as to what should happen with the left over assets?

Kind regards

AJ
Customer: replied 3 years ago.

Yes they intent to distribute the capital to chartiable organizations. Do wthey have to involve a solicitor to wind it up legally or do they just exhaust the monies and close account. All records have been kept in order and the trustees have adherred to the rules of the trust fund.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You have to consider the following if the Trustees do anything to breach the terms of the trust then they could be held personally liable.

It would be worth obtaining a solicitor to advise the trustees as effectively an insurance policy. If anyone comes out the would work to sue the trustees then the trustees can says "they obtain professional advice and followed it". Furthermore if the advice do subject the trustees to a personal claim they will be able to sue the solicitor (who will have insurance) if the advice is incorrect.

I look forward to hearing from you.

Kind regards

AJ
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