Understanding Trust Deed Provisions
Published on 03 Jun 2014
| Took place at Edwards Marshall, Adelaide
Trusts have long been a central part of Australian commercial enterprise. They are often the “go to” structure for business and investment purposes and are a very effective wealth management tool.
Central to every trust is its trust deed. Every trust deed is different. The importance of the trust deed cannot be understated. It is this document that generally establishes the trust and which sets out the terms on which the trust may be operated and managed. It is this document that defines the beneficiaries, determines when the trust is to come to an end and sets out the conditions under which the trustee is to hold the trust property.
In recent times the ATO has increased its emphasis on the terms of the trust deed. This is apparent in rulings such as Taxation Ruling TR 2010/3 and Draft Taxation Ruling TR 2012/D1 and in Taxation Determination TD 2012/22.
Understanding the terms of your trust has never been so important. What can be done with a trust deed that is outdated and does not meet the needs of the beneficiaries? What are the risks from a trust law, taxation and duty perspective? These are matters of concern to many advisers and their clients. This presentation included: