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In this edition of ‘It depends’, associate Sacha Robinson talks about appointing or removing beneficiaries of your family trust.
Hi. Welcome to today’s edition of It Depends. Today we will be talking about appointing or removing beneficiaries of your family trust.
It depends.
Firstly, you should consider why you want to appoint or remove beneficiaries of your trust and whether it is even necessary. There are many reasons why you may want to appoint or remove – certain beneficiaries of your trust, for example, it may be a requirement of a bank or financial institution. Or it may be a condition of a family law settlement. There are also more general reasons why you may want to narrow the categories of beneficiary of your trust. For example, for payroll tax reasons or to exclude foreign persons for land tax and duty surcharge purposes.
You should be careful when appointing or removing beneficiaries of your family trust as there may be tax or duty consequences.
It depends. The first step is to read the deed and follow whatever process is set out in the deed. For example, there may be a power in the trust deed for the trustee or the appointor to remove or appoint beneficiaries. Beneficiaries may also be able to disclaim their interest as a beneficiary.
It is important that you remove or appoint any beneficiaries of your family trust properly to avoid any unintended consequences. Please contact me or a member of our team to discuss further.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.
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