A group of businesses is owned under a Trust, for which the founder has the Power of Appointor over (he can nominate or remove the Trustees as he wishes). In turn his chosen Trustees make him CEO of the businesses. Upon his death, he intends to hand over this Power of Appointor to 3 or more trustees - and make all of his children (more than 6) beneficiaries of the Trust.It is his desire to make one of his children CEO of the group of Businesses. How does he legally bind his personal Trustees (named after his death, whom take over the Power of Appointor) to have the Trustees of the Trust (that owns the Businesses) make this child the CEO of the Group?
What is the best way for the founder to ensure this Child becomes CEO. This child is also a beneficiary and one of his Personal trustees.
I apologize for being blunt, but the answer is you dont ask this question on this forum. You meet with an Estate Planning attorney, allow them to review all the documents, allow them to go over with you your goals, stated and unstated, and allow them to play "What if with you"
To answer your question the Trust document would need to be carefully and throughly review especially with respect to the Power to Appoint.
One of the topics of consider would be what if it turns out that the Child cannot handle the position of CEO?
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7 lawyers agree
I very much agree with Mr. Shultz. This sounds like a complicated arrangement. If the businesses have any net worth at all, you really need to seek (VERY) qualified legal advice from a competent attorney who can review the entire situation with you, including all of your documents. At this point, you have total control of the entire arrangement. Careful planning will allow that to continue for as long as you are able and want to, and then provide for the transition that you wish. You cannot get those kinds of answers on this website.
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Who are you? The creator of the trust or a beneficiary? If you are the creator consult with the attorney who drafted the trust. If you are a beneficiary ask your father how he intends to do it.
It sounds like an irrevocable trust may have been created for tax reasons. Sufficient control over the trust to accomplish what you are describing may jeopardize the tax planning. Be careful.