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Changing perpetuity periods and vesting dates

Published on 01 Feb 13 by "THE TAX SPECIALIST" JOURNAL ARTICLE

For various reasons, it may become necessary or desirable to extend the life of a trust beyond the original vesting or perpetuity date. The question may then arise whether such an extension constitutes an amendment to the trust, or amounts to a resettlement, thereby perhaps triggering a CGT event or other taxing point. A detailed knowledge of the statutory history must be brought to bear on each problem, as some reforms are comparatively more modern than the deeds about which advice is sought, and it is not always clear which law has applied from time to time to a settlement.

This article discusses recent developments in the approach of the Commissioner of Taxation to creation and amendment of trusts, and Australian and English case law on the power to amend. The article concludes with discussion of practical matters including the kinds of inquiries advisers should make and proposals which may be considered.

Author profile

David Marks CTA
David W Marks, QC, CTA is a Barrister at the Queensland Bar, with an extensive practice principally in tax, and more generally in equity and commercial matters. David was admitted as a solicitor in 1992, as a barrister in 2000, and took silk in 2015. He is an interstate member of the SA Bar Association. David contributes to tax law & policy submissions, for The Tax Institute, as a member of TTI technical committees. He is a past member of Qld’s State Council and Education Committee. In 2013, David received TTI’s Meritorious Service Award. - Current at 02 March 2017
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