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    How to complete a trust profile after XPM import

    Once you have imported a trust from XPM we recommend you follow these steps to review and tidy the data in Connectworks.

    As XPM only holds a certain amount of trust specific information, there are lots of other details you can add in Connectworks.Below we will explain the typical areas which need updating. 


    What you need

    • The trust deed
    • Variations to the deed
    • Deeds of appointment/removal
    • All historical trust documents (if building a complete record)
    • All financial records (if building a complete financial ledger)


    Update the main dashboard

    To update the trust's main dashboard page, click Edit trust profile in the top right corner. This is where you can complete details such as:

    • Type of trust
    • Vesting Date
    • Annual Review
    • Gifting Date 
    • Client reference / Matter number
    • Contact details
    • Terms of the trust
    • Bank details
    • GST / IRD number

    See more information: 

    How to edit trust profiles

    After a trust has been set up, a profile can be edited in three ways:

    1. Using the edit button from the Clients gallery: 


    2. Using the update buttons in the slide out panel: 


    3. Entering the trust workspace (by clicking on the name) and then selecting edit in the top right corner of the workspace: 

    After selecting edit you will be directed to the update trust form, where you can add/edit all the essential details about the entity.

    Navigate between the tabs on the left, select update to save information in each tab, or update and close to exit the form.

    Fields available to edit in the profile are: 

    General Details

    • Legal name

    • Trading name (if different)

    • Type of trust (Family, Estate, Trading, Charitable, Investment, Farming, Business value protection, Living, Property, Testamentary, Standby, Other)

    • Trustee decisions require Unanimous/Majority approval

    • General notes on the terms of the trust

    • Power of appointment

    • Distributions within 6 months (not aware/yes/no)

    • Distributions of gross income (not aware/yes/no)

    • Investment strategy notes

    • Name of bank

    • Account name

    • Account number

    • Notes on banking arrangements

    Client Administration

    • Business unit (see more here)

    • Partner (see more here)

    • Manager (see more here)

    • Client reference

    • Practice management ID

    • Set up status (see more here)

    • Annual review date

    Contact Details

    • Email address (primary contact)

    • Website

    • Primary phone number

    • Other phone number

    • Physical address

    • Postal address

    Dates & Events

    • Date of settlement

    • Vesting date

    • Vesting event

    • Gifting (anniversary) date

    • Annual general meeting

    Tax & Finances

    • Tax residency country

    • Subject to foreign tax requirements (not aware/yes/no)

    • Tax ID number

    • Other tax number

    • Tax code

    • Files tax return (not aware/yes/no)

    • Annual balance date

    • Subject to FATCA reporting (not aware/yes/no)

    • Giin

    • Subject to CRS reporting (not aware/yes/no)

    • Financial classification (not specified, passive non financial entity, active non financial entity, reporting NZ financial institution, non reporting NZ financial institution)

    Notes & Comments

    • Summary notes

    Associated Parties


    Update associated parties

    During the XPM import process, you were required to enter the trust settlement date - this becomes the default appointment date for all trustees and beneficiaries.

    In most instances this appointment date is correct, however if there is a deed of appointment/removal then you will need to apply these changes manually. You may also be required to add retirement dates for any historic trustees. 


    For natural born persons see:

    Correcting a trustee or beneficiary appointment date

    By default Connectworks locks trustee and beneficiary appointment dates so they cannot be changed accidentally. To resolve an incorrect appointment date you will need to un-assign and then reassign the the role. 

    To do this:

    1. Locate the trustee/beneficiary in the trust profile Parties tab.

    2. Click the Edit button to the right of the name appearing in the list, and then navigate to the Roles tab of the Update association form.

    3. Select the tick box to remove as a trustee/beneficiary and then the tick box I made a mistake, remove from history and then select "update".

    4. Then select the Record as a trustee/beneficiary tick box and re-appoint the role/s with the correct date, then select update & close.


    Note - Deleting a party added in error

    If the person has been assigned to the wrong role (rather than retired from a position), simply click into the edit profile screen and select the “I made a mistake, remove from history” option, then select Update and close.

    After removing the assigned role, if the party has no association to the trust you may delete the profile completely from the trust. This can be done using the "...drop down menu on the main list. Only parties displaying No assigned role can be deleted.

    To maintain an accurate record of the trust, parties with historical associations should not be deleted in this manner.


    Retiring a trustee or beneficiary

    This article describes how to retire a trustee or beneficiary from a trust, as well as how to remove access for any associated parties who have been invited into the trust's workspace.


    Retiring the role

    1. Open the Trust and click on Parties. 

    2. To the right of the name of the the trustee you will be retiring select edit.

    3. Click on Roles tab of the edit form and place a tick on Remove as Trustee or Remove as Beneficiary

    4. Select the Date of removal and click "Update". 

    In this example, the trustee retirement date is 12 Feb 2019:

     

    Removing Access

    Next, if the associated party has been invited to access the trust profile but no longer requires/should have access to the trust:

    1. Navigate to the Access Rights tab of the Update association form.

    2. Click on the drop-down menu and select No access.

    3. Click "Update and Close". 

    NB. After retiring a trustee/beneficiary and removing access, the individual will be removed from the default list of associated parties, but will be retained as a historical association that can be reviewed using the No Access filter in the Parties tab. The retired party's role/s & dates will now show in the slide out panel when selected.


    Deleting a trustee or beneficiary added in error

    This article explains how to remove either a beneficiary or trustee from the trust record. 

    This action will delete the association from the trust completely and should only be used for associations which have been entered in error.

    Historical associations should be retired and have their access removed, but should remain recorded in the trust's profile to maintain an accurate record of the trust. To leave the historical association on the trust as a record please see our article Retiring a trustee or beneficiary.

     

    Remove active roles

    Associated parties assigned with active roles in a trust cannot be deleted. Their roles must first be unassigned before the profiles can be removed. To do this:

    1. Enter the trust's workspace and click on the Parties tab

    2. Select the Edit button to the right of the person/entity you want to remove.

    3. In the edit form select the Roles tab on the left-hand side.

    4. Place a tick on Remove as Trustee/Beneficiary, and then place tick on I made a mistake, remove from history.

    5. Click "Update and Close".   


    Delete association

    After removing the roles you will be returned to the main Associated Parties page, where you will now be able to delete the association from the trust profile. To do this:

    1. Tick the box next to the person.

    2. Click on the "..." drop-down menu in the top right corner of the slide-out panel and select delete.

    Merge contacts

    It is likely that duplicate contacts have been created by the XPM import. To quickly locate and merge these profiles see follow the instructions in our article below: 

    Monthly Merge Check for Firm Administrators

    We recommend all firms perform a monthly merge check to ensure the Contacts list is maintained in a tidy manner. The easiest way to identify if any duplicate profiles which have been created during the course of the month is to download a .csv file of your Contacts list and use the "match duplicate values" function in Microsoft Excel to quickly identify any double-ups. 

    Quick identification of duplicates using Excel

    1. From your firm workspace go to Clients>Contacts.

    2. Select the "I would like to..." dropdown menu and select Export list (CSV).

    3. Open the Excel file when the download is complete.

    4. Select the header for Column A to highlight all cells containing client names.

    5. Navigate to the Conditional Formatting menu.

    6. In the Conditional Formatting menu select Highlight Cell Rules then Duplicate Values. You will then be asked to confirm your selection. Select yes and you will find all duplicate contacts are now highlighted red.

    7. Return to Connectworks, locate these clients in your Clients>Contacts list, search for each highlighted contact and complete the merging process to combine the duplicates.



    For corporate trustee companies:

    With Corporate Trustee Companies, there are several things to consider:

    1. Is it a historical corporate trustee company? 

    If so simply select the appointment and retirement dates for the company to record when it was a trustee in the trust, as per:

    • Correcting an incorrect trustee or beneficiary commencement date (above)
    • Retiring a trustee or beneficiary (above)

    2. Is it an active corporate trustee company? 

    Corporate trustee companies are free subscriptions when they are linked to a trust in Connectworks. Importing the company profile from the Companies Office will bring through the director & shareholder information you will require for distributing documents for signing, as well as for completing AML compliance. 

    Follow the instructions below to import the company into your profile and connect it to the trust:

    Import the company from the Companies Office

    1. Navigate to your firm's Clients tab.

    2. Select the "I would like to..." menu at the top right of the page and then "Add new Company" .

    3. Use the search bar to find the company you wish to import by typing in the company name, company number, or NZBN. 

    4. When the company appears in the list, hover over it and click the ‘Import’ button.

    5. Complete the Add company form. 

    In the Add company form, ignore the subscription plan and instead select the tick box "this company is a corporate trustee for one or more trust clients". This is a free subscription if the company will be linked to one or more trusts on a paid subscription plan in Connectworks.

    Helpful Tips
     In the Add company form we recommend selecting the tick box for "automatically merge people with identical names" - this will prevent duplicate contact profiles being created when a director is also a shareholder.

    Assign the company as a trustee

    1. After importing the company, navigate back to the trust's workspace / parties tab.

    2. Select the "I would like to..." button and Add company 

    3. In the Add company form, search for the company using the search your contacts function. 

    When the company appears in this search simply select the "add associated party" button from the list and continue completing the subsequent form to assign it as a trustee.

    Note in the image below there are two copies of the same company. If you see duplicates like this, always select the version which displays Nature: Client

    Do not add companies displaying Nature: Contact

    Delete the old version of the trustee company

    This article explains how to remove either a beneficiary or trustee from the trust record. 

    This action will delete the association from the trust completely and should only be used for associations which have been entered in error.

    Historical associations should be retired and have their access removed, but should remain recorded in the trust's profile to maintain an accurate record of the trust. To leave the historical association on the trust as a record please see our article Retiring a trustee or beneficiary.

     

    Remove active roles

    Associated parties assigned with active roles in a trust cannot be deleted. Their roles must first be unassigned before the profiles can be removed. To do this:

    1. Enter the trust's workspace and click on the Parties tab

    2. Select the Edit button to the right of the person/entity you want to remove.

    3. In the edit form select the Roles tab on the left-hand side.

    4. Place a tick on Remove as Trustee/Beneficiary, and then place tick on I made a mistake, remove from history.

    5. Click "Update and Close".   


    Delete association

    After removing the roles you will be returned to the main Associated Parties page, where you will now be able to delete the association from the trust profile. To do this:

    1. Tick the box next to the person.

    2. Click on the "..." drop-down menu in the top right corner of the slide-out panel and select delete.


    Upload historical documents

    Document management in Connectworks is covered extensively in our training module Document Management - The Basics (session 1) - we recommend all users watch this 25min video and download the associated workbook.

    A written article is also available here: 

    Storing & accessing documents

    Contents

    1. Uploading documents

    2. Bulk uploading documents

    3. Editing document details

    In a Trust Workspace the Documents tab is the repository for all the trust’s documents. 

     

    Uploading documents

    You can upload documents into the document repository by clicking the "I would like to…" drop-down.

    • If the document is still in draft, or is a new document which needs to be distributed for signing, select the Upload a document option.
    • If the document is already signed or relates to past activity use the Upload a document (historical)
    • You can also to choose to auto-generate documents from Connectworks precedents here. Learn more about precedents here.

      You can then search for (or drag and drop) the document into the upload screen, and record the name, type, signing date, apply document category tags and add other details for the document.


    Adding category tags is important as they will make documents easier to filter & search for later. Certain tags will also automatically display documents in relevant locations, for example applying the "Minutes" tag will display these documents in the minute book.

    Please note - Documents cannot be dragged directly from an email attachment, to successfully upload a document it must first be saved to your computers hard drive.


    Bulk uploading documents

    You can upload multiple documents simultaneously by clicking the "I would like to..." drop-down and selection the Bulk upload documents option.

    Note that when uploading documents in bulk and selected category tags will be applied to all the documents. The document file names also cannot be changed in the bulk uploading process, meaning the documents will be titled according to the files being uploaded. If required, you can edit the category tags, document name and other details once the document is uploaded.


    Editing document details
    To edit the details for a document (such as document name, adding category tags, additional notes, or setting confidentiality status) simply navigate to the documents list.

    1. Select the tick box of the desired document.

    2. Click on the Cogs.

    3. Click on edit.


    Update the trust ledger

    Connectworks trust profiles contain a comprehensive ledger for recording a trust's financial activities. Below is an overview of the features containing links to more comprehensive articles.

    Assets & Liabilities Overview

    The assets and liabilities ledger in Connectworks is a suite of features for recording financial transactions performed by a trust. This article gives a general overview of the Assets & Liabilities ledger, including key terminology.

    Detailed user guides for the Assets & Liabilities Ledger can be found in our knowledgebase here.

     

    Contents 

    1. How to access the assets and liabilities ledger

    2. Glossary

    3. Accounts

    4. Account movements

    5. Transactions

    6. Reports

     

    How to access the assets and liabilities ledger

    1. Navigate to the relevant trust in your Clients>Trusts tab and click on the trust name to enter the trust's main workspace. 

    2. On the left-hand column click on the Ledger tab. 


    Glossary

    • Account - repository which funds may move into or out of.

    • Account movement - movement of funds from one Account to another.

    • Transaction - records an activity, involving two or more balancing Account movements. 

    • Journal - a collection of records.


    Accounts

    An Account is a repository that funds may move into or out of. In this sense, an Account may be:

    • A bank Account out of which the trust makes payments, or into which the trust receives income.

    • A loan Account, recording a loan the trust has received from a bank or other party.

    • A distribution Account, recording the distributions that have been made to a particular beneficiary.

    • A non-current asset, like a house, boat, or other trust property. These are treated as accounts into which funds of the trust have been moved.

    • An income or expense category, allowing all income or expenses relating to a particular source to be tracked.

    • A suspense Account, for recording any movement of funds that has not been allocated to another Account.

    The Accounts>Chart of Accounts tab displays all Accounts that have been created for the trust. Accounts are grouped into categories, which you can then use as filters to review specific Account types (eg. expenses or distributions).


    The suspense Account

    A general ledger Journal is required to be balanced, meaning that all the Account movements declared must sum to zero. eg. When recording an expense, one debits an Account representing where the money came from (such as a bank Account or loan Account) while crediting an expense Account.

    A challenge Connectworks faces is that some systems are not balanced, and simply record that the Trust has acquired an asset without recognition of how it came about acquiring that asset. Without this traceability, formulating a set of accounts or tracing gifting can be challenging. The traditional approach is to balance these movements against a suspense Account for later reconciliation. The suspense Account acts as a placeholder for movements in funds that can be dealt with at a later date (and at the very least, remain identifiable).


    Account movements

    An Account movement is a movement of funds into or out of an Account e.g. when purchasing a property, funds are moved out of one Account (a bank Account, suspense Account, or other Account containing funds) into an Account representing the property. 

    The Accounts>Account Movements tab provides a full overview of all movements between the accounts you have set up. Again these movements can have filters applied to view the list by either Account categories, specific accounts or dates.

    Account movements can be viewed in two ways:

    1. Via the Accounts>Account movements tab (which lists all movements chronologically)

    2. via locating the Transaction that the movement was a part of:
    A movement into or out of one Account is balanced by a corresponding and opposite movement into or out of another Account. In this sense, all movements sum to zero. The Transaction gallery shows every movement that has been recorded.


    Transactions

    Transactions record the financial activities that trusts engage in. Connectworks supports the below types of common trust Transaction, just click the links if you would like more details on how to record these Transaction types.

    Asset Transactions

    Asset acquisition
    The most common method by which a Trust comes to acquire an asset is via the asset being gifted into the Trust during the settlement of the trust. This involves some party (usually the settlors of the trust) lending money to the trust, which the trust acknowledges by completing a deed of acknowledgement of debt.

    After receiving the loan, the trust uses the funds to purchase an asset. Often, the asset will be owned by the settlors (for example, the settlor’s home). The settlors then periodically forgive the debt owed to them by the trust. In this way, ownership of the asset comes to be transferred from the settlors to the trust.

    Trusts may also purchase assets via traditional methods. In reality, this involves moving funds from an Account owned the by trust (as the buyer) to an Account owned by the seller. This movement is balanced by transferring ownership of the asset from the seller to the buyer. Often, however, a professional trust manager may not wish to specify the accounts involved in the purchase but simply wishes to record that the purchase occurred. Here the movements can be recorded against the trust’s suspense Account.

    Asset sales
    Trusts can dispose of assets via traditional sale. Sales can be in whole or in part. The same principles as described regarding transfers of funds apply in cases of asset disposals.

    Asset capital additions
    Capital additions include things such as renovations or improvements to a property or other asset, purchasing additional shares in a company, or contributions to a PIE fund investment.

    Asset revaluations
    The value of any asset may change over time. 

    Debt, gifting and loan transactions 

    Loans to the trust (Acknowledge debt)
    A trust may receive loans of funds from a bank or non-bank debt facilities. Bank loans are generally received in order to allow some asset to be acquired (e.g. a mortgage to purchase a house). A non-bank debt facility is any third-party that is not a bank. The most common third party is the settlors of the trust, though in principle it can be anyone. These loans are also received in order to facilitate the purchasing of assets.

    Bank loans must be repaid, and (depending on the terms of the loan) loans from non-bank debt facilities may require to be repaid. However, as described above (and again subject to the terms of the loan), loans made by non-bank debt facilities can be forgiven.

    Loans from the trust (Advance loan)
    A trust may loan money to any party it chooses.

    Loan repayments to the trust (Recover loan)
    Where a trust has extended a loan, the party receiving the loan may be required to repay it. Repayment can be made in whole or in part. 

    Loan repayments from the trust (Repay loan)
    As described above, bank loans must be repaid, and (depending on the terms of the loan) loans from non-bank debt facilities may require to be repaid. However, as described above (and again subject to the terms of the loan), loans made by non-bank debt facilities can be forgiven.  

    Forgive debt (gifting)
    Where a third-party has extended a loan to a trust, the third party may choose from time to time to forgive the loan, in whole or in part. This forgiveness is performed via the third party completing a deed of forgiveness of debt. Connectworks has various precedents available to generate the required documents for gifting.

    Distributions

    Capital & asset distributions
    A trust may distribute assets to any beneficiary of the trust. This involves a simple movement from an Account representing an asset of the trust, to an Account representing the particular beneficiary. The beneficiary Account accumulates the total distributions made to that beneficiary over time. Capital distributions follow the same principles as per asset distributions, it simply that a capital distribution stipulates that the asset being distributed is capital (cash). 

    Income distributions
    Income distributions follow the same principles as per capital distributions, it simply being that an income distribution stipulates that the capital being distributed was acquired as income of the trust. (There is also an additional difference in how tax is treated. Where income is distributed, all income tax requirements ‘look through’ the trust, and fall instead on the beneficiary.)

    Income & expenses

    Record income
    A trust may own an income-generating asset (for example, a rental property). When recording income, one debits an income category Account representing where the money came from (the income source) while crediting a bank Account. The income category Account accumulates the total payments made against the income category.

    Record expense
    Any Transaction may involve additional expenses being incurred, beyond the drawdown of funds involved in the core activity described by the Transaction. When recording an expense, one debits an Account representing where the money came from (such as a bank Account or loan Account) while crediting an expense Account (that accumulates the total payments made against the expense category represented by that Account). 

    Account transactions 

    Transfers between accounts
    Funds may be transferred between accounts, outside of any specific activity or Transaction (e.g. as a bank transfer between the trust’s bank accounts).

    Account opening balances

    Because all transactions must be balanced, the opening of a new Account (where that Account has an opening balance) must be balanced by a corresponding Account movement. In Connectworks, the opening balance of an Account is balanced via a debit to the trust’s suspense Account. 


    Reports

    A variety of reports are available to download from the Reports tab.

    Place a tick on the type of report you would like to download on the left-hand side of the page
    Click on the "I would like to..." and select the Export results button to download a .csv (excel) file. 


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