Question 1

Why is the Deed of Ratification of Verbal Trust Distribution Minutes important for discretionary trusts?

Accepted Answer

The Deed of Ratification of Verbal Trust Distribution Minutes is crucial for discretionary trusts as it allows Trustees to formalise and validate trust distribution decisions made verbally in the past. Without formal documentation, the trust may be exposed to penalties and risks associated with incomplete records.

Question 2

Can I use this deed to ratify trust distribution minutes from multiple income years?

Accepted Answer

Yes, this deed can be used to ratify trust distribution minutes from multiple income years. It provides a retrospective validation for all past verbal trust distribution decisions, ensuring compliance and certainty for the trust.

Question 3

What are the potential consequences of not ratifying verbal trust distribution minutes?

Accepted Answer

Failing to ratify verbal trust distribution minutes may result in the trust being penalised with a 45% penalty tax. It could also lead to uncertainty and disputes among beneficiaries regarding past distributions.

Question 4

Can the beneficiaries challenge the ratified trust distribution minutes?

Accepted Answer

Once the Deed of Ratification of Verbal Trust Distribution Minutes is executed, it provides legal validity to the trust distribution decisions. While challenges are possible, having formal documentation strengthens the Trustee's position and reduces the likelihood of disputes.

Question 5

Can I use this deed for discretionary trusts in all Australian states and territories?

Accepted Answer

Yes, this deed is designed for use in all Australian states and territories, making it suitable for discretionary trusts nationwide.

Question 6

How long does this document take to assemble?

Accepted Answer

Depending on the complexity of the data, this document should take approximately 15-30 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Question 7

Is this a legal document?

Accepted Answer

All master documents have been signed off by LY Legal. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 8

Is the document easy to read?

Accepted Answer

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

Question 9

What lawyers sign off on LYD documents?

Accepted Answer

All LYD documents are prepared and signed off by LY Legal.

Question 10

Are the LYD documents reviewed regularly?

Accepted Answer

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.