Australian Law

Australian Law

Australian Law

May 26, 2011

Mr. Archie Director of Operations

Australian Trust

1000, main street E

Australia

Dear Mr. Archie

In the common legal systems, in Australia, a trust can be defined as a relationship in which a person or organization would have the responsibility to handle a particular property, which could include tangible & intangible property, for the gain of another person. A settler, who is also called “Grantor”, trusts a part or all of his property to the people of his own choice, and they are called “Trustees”, establish a trust. The trustees have a lawful title to the property of the trust property; however, they are compelled to keep the property for the benefit of one or more beneficiaries of the trust, which have been specified by the grantor, and who holds the equitable title to the property. The trustees of the property owe a fiduciary obligation to the beneficiaries of the trust, who are the legal and the beneficial owners of the trust. In our case, company will be the trustee of the trust. The beneficiaries of the trust were Archie and Joss, and it will be the responsibility of both to look after the property of the trust.

A trust is normally regulated by the terms and conditions of the document of the trust, which is normally written & is at times, set out in written form. The local laws govern the terms and conditions of the trust, and a trustee has to follow the document of the trust and the local laws as well, when running the trust.

Organization as Trustee

One can view a trust as a general form of an organization, where the settlers or investors, are the beneficiaries of the trust. One of the most crucial facets of a trust is the ability of the trust to separate the trustee from the assets and safeguard the assets at the same time from the different beneficiaries of the trust, and the creditors of the grantor and trustee.

The trustees

The trustee could be either an individual or a lawful body, e.g. an organization. A trust could have a number of trustees. The trustee has many a numerous privileges & obligations; which usually alter from trust to trust, and is dependent on the nature of the trust. A trust usually would not go wrong exclusively for the desire of a trustee. The court has the authority nominate a trustee, who would be the administrator of a charity, which is related to the trust. Trustees are normally nominated through the document or instrument, through which the trust is created.

A trustee could be held responsible for a few problems, which could arise within a trust. For instance, if a trustee does not take any step to increase the assets of the trust, which have the potential to grow, then the trustee could be held responsible for the lack of efforts.

Commercial Aspects

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