Deed of Appointment

A Deed of Appointment of Capital Sums is a formal document which records a decision by trustees to distribute (or “appoint”) funds to a beneficiary.

What is a Deed of Appointment of Capital?

A Deed of Appointment of Capital refers to a legal document that authorises the distribution or transfer of trust assets or capital to beneficiaries. It is used when the trustees have the power to distribute or allocate the trust’s capital such as property, investments or funds to specific beneficiaries.

The Deed of Appointment of Capital outlines the details of the distribution, including the specific assets being allocated, the beneficiaries who will receive them and any conditions or restrictions that apply. It acts as a formal record of the trustees’ decision to distribute the trust’s capital to the designated beneficiaries so there can be no uncertainty over the trustees’ intentions.

When the trustees decide to make a distribution of trust assets, they use the Deed of Appointment of Capital to specify which assets are being distributed, how they will be transferred and the rights and obligations associated with the distribution. This document helps ensure transparency, clarity and legal validity in the distribution process.

The Deed of Appointment of Capital should be prepared and executed in accordance with the terms of the trust deed and any applicable legal requirements. It is typically signed by the trustees, and in some cases, the beneficiaries or other relevant parties may also be required to sign as witnesses or to acknowledge their consent to the distribution.

Whilst keeping a formal record of trustee decisions and actions is generally considered as being ‘best practice’, trustees’ powers of appointment are often subject to a requirement that any exercise of the same must be made by deed. Accordingly, any appointment of capital which is not made by deed may be invalid and cause problems for both the beneficiary and the trustees further down the line.

Why choose Price Slater Gawne?

Our specialist team are experienced in drafting and executing deeds of appointment in accordance with the relevant laws and regulations. If you would like to speak to a member of the team, please contact 03333 058375 or email WealthProtection@psg-law.co.uk.