Custodian Trustees

Instead of being directly owned by the Trustees, Trust Property can be vested in a Custodian Trustee who holds the Trust Property on behalf of the Trustees.

A custodian trustee  is administratively useful when the “Managing Trustees” are natural persons since the title of the assets of the trust do not need to be re-vested every time there is a change in one of the “Managing Trustees“.

In Queensland {Section 19(1) of the Trusts Act 1973 (Qld)} and Western Australia any corporation may be appointed as a custodian trustee {Section 15(1) of the Trustees Act 1962(WA)}.

In Victoria the custodian trustee may be either the State Trustees or an “approved corporation” as defined under Section 71(2)  of the Trustee Act 1958.

In Tasmania the Custodian Trustee must be the Public Trustee {Section 23  and Section 24 of the Public Trustee Act 1930 (Tas)} or a trustee company {Section 18B(c) of the Trustees Companies Act 1953 (Tas)}.

In South Australia the custodian trustee must be the Public Trustee {Section 17(1) of the Public Trustee Act 1995 (SA)}.

In South Australia, Tasmania and Victoria the Statutory Legislation provides that the custodian trustee may be appointed:

  • under the trust instrument,
  • by order of the court, or
  • by any person having the power to appoint a new trustee.

In South Australia {s 17(3(c)}, Tasmania {s 24(c)} and Victoria {s 71(4)(c)} the Statutory Legislation gives the custodian trustee custody of all securities and documents of title relating to the trust property to which the managing trustees are entitled access.

 

 

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