trust deed

Re-settlement of trusts – towards a definitive test

Until relatively recently, it was generally thought that amending a Trust Deed to add beneficiaries (for example) would amount to a Re-Settlement (Re-Settlement) of the trust and the creation of a new trust with consequential effects of capital gains tax (GST) and potential liability for state based transfer duty.   The case of Commissioner of Taxation v Clark [2011] FCAFC 5 (Clark) provides authority for the proposition that this is not necessarily the case. Clark and provides a basis for the development of a formulaic approach to the development of a set of broad tests which can be applied to ascertain whether a Re-Settlement may or may not occur.

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Is your trust deed still not Bamford compliant?

If your trust deed was created more than two (2) years ago then chances are it does not comply with  the principles espoused in Commissioner of Taxation v Phillip Bamford & Anor Phillip Bamford & Anor v Commissioner of Taxation [2010] HCA 10 (Bamford). [Read more…]

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