What happens to the discretionary trust when the Appointer dies? Will the wishes upon the deceased appointer causes a resettlement of the trust?
So, therefore is it vital that the trust deed state what happens upon the death of an Appointer?Such an amendment to the wishes of the deceased appointer will attract no or nominal stamp duty and is not a resettlement of the trust?
If the deed does not include such clauses, am I better of going to a tax lawyer to draft the deed to tailor my needs?Any help will be much appreciated.
Without a doubt you need to go to a good tax lawyer to get the deed drawn up. It will cost you a little more than getting one off the shelf from the corner store, but a trust is a 80 year investment vehicle so surely it is worth spending a little money getting it right.
Luke.
Usually the trust deed will cover what happens. Often there are back up appointors named. If the deed is silent then you would probably need to amend the deed and this usually wouldnt cause a resettlement.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you for the above advice.
I have gone to see a solicitor last week to seek advice.
You are correct Terry; changing appointors would not resettle the trust.
I had a debate with the solicitor that I believe a minor could be name as an appointor in a Will. I am assuming as long as the minor appointor has a guardian.
Am I correct on this? Can anyone send me any link to the answer towards this question?minors don't have legal capacity. If a minor was appointed appointor then their guardian could probably act in their place if this is drafted into the deed. interesting question.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think it would be a bit risky making a minor appointer anyhow. Thats a lot of responsibility esp seeing as that means the minor could replace the trustee. Probably not a good idea.
So you can change appointers without resettling the trust.
Can you change trustees and directors without resettling the trust?
Minors don't have legal capacity so I don't think a minor could act as an appointor until they reach 18.
Trustees and appointors can be changed without resettlement. But this doesn't necessarily mean that a resettlement won't occur. Careless changing of the trustee could result in stamp duty being due again.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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