Cooper Grace Ward Lawyer partner Clinton Jackson says many deed providers update their deeds without reviewing them to make sure they’re actually updating it based on the current valid rules of the fund.
“There are a lot of deeds out there that have a bad history in the sense that there has been an error made along the way in terms of updating the deed or changing the trustees,” Mr Jackson said.
“If you’re replacing the deed, the only way you can make sure that those rules are valid and give you all the flexibility that you are trying to achieve with the new rules is to make sure that history is clean.”
If the history is not clean, any issues will need to be addressed, “otherwise the update to the trust deed is not worth the paper it’s written on”.
It means that if a previous upgrade or amendment to the deed wasnt made correctly, then any subsequent upgrades or amendments are based on a poor foundation. Even if the second amendment is done in accordance with trust deed rules, it fails because the original deed upgrade didnt follow the correct rules/process
I am wondering what is meant by the term ‘ensure that history is clean’.