Mayo, Todd D
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(Article) Trust governance models
01.06.2017
The author delves into the operating framework of trusts in terms of their governance structure. The purpose is to show the variety and enable family offices and advisers to choose a model that fits the family's needs. In this innovative, clear review there are four types of trust governance models. Unitary trust. The trustee is vested with all of the trustee powers. The trustee has the power to make distributions and to invest the trust property. The trustee also has all the administrative powers. Directed trust. The trustee is vested with all of the trustee powers, except that, with respect to certain powers, the trustee may act only in accordance with another person's direction. For example, a person other than the trustee may have the power to direct the trustee to make distributions or the power to direct the trustee concerning the investment of the trust property. Divided trust. The trustee exclusively is vested with certain trustee powers, and one or more other persons exclusively are vested with other trustee powers. A common example is the pure administrative trust, in which the trustee is vested with only administrative powers (eg, recordkeeping, tax compliance, etc), and a trust adviser (perhaps called a distribution adviser or distribution director) is vested with discretionary distribution powers. Hybrid trust. Incorporates elements of a directed trust and a divided trust. For example, a trust instrument may grant to a person the power to direct the trustee to make distributions, while granting to another person the exclusive power to manage the trust property. The detailed explanations and examples make this a very helpful article. -
(Article) Protecting settlor intent
01.12.2018
Todd Mayo offers another perspective on ways in which a settlor's trust should be drafted in a manner that would facilitate the implementation of the settlor's actual intent. He details the importance of having clear drafting, and gives a number of examples of traditional trust language that results in an unfortunate number of conflicts and court cases because the language is not clear. For example, ?a common source of ambiguity is the mixing of language of obligation with language of discretion? and ?common terms and phrases do not necessarily have consistent meanings?. He insists that ?writing in plain English is a vital part of not being misunderstood. It improves clarity and readability, and it makes the trust instrument more accessible to everyone who reads it. For a document that may affect many generations, that is vital?. His lesson is a refreshing one in the complex field of trust drafting. -
(Article) Minimising the potential for trust disputes
01.06.2019
This comprehensive article "Minimising the potential for trust disputes" is a must-read for every fiduciary and every family office that includes the oversight of trusts. The authors, Todd D Mayo and Kevin W Rethore, have extensive experience with trusts. Their valuable advice is easy to understand and important to implement. We are always interested in providing leading ideas in the trust field, and thank them for this great contribution. -
(Article) Consider creating a private trust company
26.06.2023
Todd D Mayo from UBS examines the strengths and weaknesses of a private trust company model before going on to explore possible structures and suitable jurisdictions for private trust companies - an excellent resource for those wishing to understand more about these popular trustee arrangements.