FAQ 24 Where will I find the wording “Able to distribute to associated entities” in my trust deed.

A trust deed may not have the exact phrase ‘able to distribute to associated entities’ but it may have the equivalent.

IT IS ABSOLUTELY ESSENTIAL THAT A LEGAL PROFESSIONAL BE CONSULTED IF UNSURE OF THE WORDING 

The specific clause may come under the sub heading of DISTRIBUTIONS and or BENEFICIARIES

For example:-
Trust type A has this wording
Beneficiaries
Any corporation or partnership of which any one or more of the foregoing beneficiaries is a member either directly or indirectly through some other entity.
The Trustee of any trust (in his capacity as such) which is bound to be determined not later than the vesting day and under which any one or more of the foregoing beneficiaries has any interest whether vested contingent or merely expectant or prospective.

Note that the foregoing beneficiaries are the named and implied family beneficiaries

Trust type B has this wording
Beneficiaries
The Trustees of any trust in which a beneficiary is a beneficiary whether present, contingent or potential and whether as to capital or income or both, provided that the trust must vest on or before the date that is 80 years(less one day) after the date if this deed.

Each corporation in which a beneficiary beneficially owns at least one share (alone or with another person) or a related body
corporate of such corporation.

Each corporation in which a beneficiary is a director or related body corporate of such corporation.

Trust type C has this wording
Classes of Beneficiaries
Includes any company of which any of the beneficiaries otherwise mentioned in this schedule is a shareholder or director OR
In which at least one share is owned beneficially by any of the beneficiaries otherwise mentioned in this schedule

The trustees of any trusts in which any of the beneficiaries otherwise mentioned in this schedule has any interest including an interest that is only expectant or prospective.

Partners in any partnership in which any of the beneficiaries otherwise mentioned in this schedule is a partner.

So it can be seen that the wording does vary considerably.

Regards
Michael & Sara
Ultimate Coaches
The information supplied is general only and not intended to replace professional advice.