For a discretionary trust, the Trust Deed is the primary source of a trustee's powers when dealing with trust property and, importantly, in making decisions regarding income and capital of the trust.

Serious consequences can flow from a failure of a trustee to be familiar with the terms of the trust deed. In this interactive and practical session, take a deep dive into common issues in interpreting discretionary trust deeds.

In this session, we cover:

Tax agents and legal advice
Why read the trust deed?
Fundamental elements of a trust deed
Top things to look out for, including:
- What is ‘income of the trust estate’ and why does it matter?
- Does the trust deed have effective default distribution powers?
- Does the trust deed have the power to stream franked dividends and capital gains to particular beneficiaries?
- What variation powers and constraints may exist? Is there resettlement risk?
- Who is the appointor? What are their powers? What happens when an appointor dies or loses capacity?
- Does the trust deed have a guardian – what are their powers?
- What happens on vesting of a discretionary trust?
- Do foreign purchaser additional duties apply – what is required?

Download resources below.

Date recorded: 30 April 2024

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