Changing Trustees

Hi

In a recent topic here there was some questions raised on changing trustees and whether this would trigger a CGT event. It seems the ATO may consider a new trust to have been created if fundamental changes have been made to a trust deed. If this happens then CGT and stamp duty may be payable.

I have found an interesting article on the resettlement of trusts, at http://www.taxlawyers.com.au/Publications/New/resettlement_of_trusts.htm which states:

“Can I appoint a new Trustee for my Family Trust?
Changes made to the Trustee do not by themselves result in the ATO deeming a new Trust has been created. However if, in addition to a change in the Trustee, other fundamental changes to the Trust have been made that alter the nature and character of the Trust relationship between the Trustee and the beneficiaries then the ATO will deem that a new Trust has been created.”

I thought this article may be of interest. There are also other good articles on trusts and other topics on this site.

Terryw
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