This article was written by Andrew Peedom for IMG
Trust's 'tensions in trusts' series on 8
May - featured here.
Although much has been said about the 'great wealth
transfer' in recent times, there has been less focus upon the
genesis of that phenomenon.
While numerous factors are relevant, one which is frequently
overlooked is our ageing population, or the "silver
tsunami" as it has been referred to in Australia. That raises
the spectre of disputes where the elderly matriarch or patriarch
decides to re-visit their succession plans late in life, which with
increasing frequency coincides with allegations of mental
incapacity and/or undue influence.
The death of an economic settlor without well-documented plans
after their passing only adds to what might already be a complex
factual matrix. The challenges faced by trustees and their advisors
to resolve such issues cannot be overstated, particularly when
those scenarios have not been addressed in the trust deed.
