Glossary

Trust Deed

A formal document which outlines the terms and conditions of the trust agreement.

Company Valuation

Total value of all shares in the company calculated at a current date (within 6 months of today's date).

Letter of Wishes

Is a letter from the settlor, to the trustees, which spells out some of their wishes. It is usually prepared in the initial stages and can be updated at any time.

Shareholder Insurance Trust

A discretionary trust that holds nominated beneficiary rights over insurance policies of shareholders of a company in an arrangement where an Accounting Firm (appointed as the Trustee) holds the proceeds of policies for the benefit of the company and its shareholders (as Beneficiaries).

Final Beneficiaries

Are those who will receive the final assets should any still exist at the time the shareholder insurance trust is dissolved.

Primary Beneficiary

The company who have first rights to receive any benefits from the shareholder insurance trust.

Settlor

A settlor is the company who sets up the the shareholder insurance trust by gifting $150 to the trustee. The settlor agrees the provisions of the trust deed, appoints the trustee and specifies the beneficiaries under the trust. The settlor creates the shareholder insurance trust. The settlor must be a legal entity or a person or persons (over 18 years of age) and of sound mind.

The Property

Nominated beneficiary rights from the proceeds of insurance policies held on shareholders by the company.

Trustee

Trustees are the people (typically the company's Accounting Firm) which have been appointed by the settlor of the shareholder insurance trust to administer the trust in accordance with it's terms and conditions of the trust deed. The trustees are the legal owners of the trust assets but hold them on trust for the benefit of the beneficiaries.