Certain variations or modifications to existing trust deeds may be considered recreations or resettlements of the trust. Resettlement or recreation has generally been defined by Courts to encompass a fundamental alteration to the trust deed as formed by the original deed. A change in beneficiary class or classes or beneficial interests may be considered to be a recreation or resettlement of a trust. However, whether a variation to a trust deed can be qualified as a resettlement will be judged on a case by case basis.
A resettlement of a trust can incur extensive tax implications for state revenue purposes, including:-
- Capital gains tax (CGT) – the assets of the trust may be considered to have been disposed of and acquired by the trustee of the new trust
- Stamp duty may be payable on the transfer of the trust assets
This underscores the importance of having a trust deed correctly and accurately drawn up by a Trust Lawyer the first time. Amongst other things, a trust deed should comprehensively address the process and circumstances under which an amendment or variation to the trust deed can be properly effected, so as to avoid acrimony and unnecessary expense in remediating inadequacies and flaws.
Our Trust Lawyers and Asset Protection Solicitors are highly experienced in drafting, establishing and implementing trust deeds. Our Lawyers have assisted a variety of individuals, families and entities take advantage of trust structures for asset protection, legal tax minimization and commercial purposes. We have exceptional experience in both a theoretical and practical sense when it comes to trust vehicles.
Contact our office to speak to a Trust Lawyer or Asset Protection Solicitor. We have branch offices conveniently positioned across the Sydney metropolitan area, including in Baulkham Hills, Bondi Junction, Gordon, North Sydney and Parramatta. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
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