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Hybrid trust - Multiple Corporate Trustees?

Discussion in 'Accounting, Tax & Legal' started by dws, 27th Oct, 2010.

  1. dws

    dws New Member

    30th Aug, 2010
    Melbourne, VIC
    Does anyone know - can you have multiple corporate trustees for a hybrid trust?

    The site I am trying to create one on only provides for multiple individual or a single Corporate Trustee. Not Multiple Corporates. Is this a feature of this particular providers Hybrid Trusts or a general limitation of Hybrid Trusts?
  2. Rob G.

    Rob G. Well-Known Member

    6th Jun, 2007
    Melbourne, VIC
    The whole point in having a single corporate trustee to to avoid the paperwork nightmare of multiple trustees.

    Multiple trustees must be joint owners of trust assets. Securities registers and land title offices require changes every time a trustee is appointed or retires. Also, every decision must be unanimous whilst if any trustee happens to change residency, trusts could be taxable in that other country as well.

    The advantage in having a single company is one of succession and administration. Everything is simple, just change directors as needed and resolutions just need a quorum, so if one director is overseas or indisposed then resolutions are effective.

    Also, from an asset protection point there is usually limited of the directors whilst individual trustees are jointly and severally liable for debts.