A common issue that arises is dealing with insurance companies over the names on insurance policies. Technically, insurance should held in the name of the owners of a property.
In the case of a trust, the legal owner on the title of a property is the trustee/s (while the beneficial owner is the beneficiaries). Clients tend to say “ the owner is the trust”, for example the “Smith Family Trust”. Assuming the trustees are Mary & John Smith and an independent trustee called XYZ Trustee Limited, the better description is “Mary Smith, John Smith and XYZ Trustees Limited as Trustees of the Smith Family Trust”. That's a bit wordy, so alternatively the shorter version of “Mary Smith, John Smith and XYZ Trustees Limited” will legally suffice.
A minute referring to the existence of the insurance policy or life policy in such circumstances, prepared and signed by the trustees, is prudent.Our experience with GRA so far has been great. Being a young couple, trying to get into investment property, there has been so much to learn and so much we simply didn't understand. You have been so patient with us, and have answered all our questions without judging. In fact you even gone so for as to offer us advice on more than just the accounting side of things. Overall, dealing with any of the staff from GRA is always a pleasant experience. Thanks. - L Schwalger
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