QUESTION: If the Family Trust name doesn’t really do anything why change it? It is not registered anywhere. It is just a nickname to help the Accountant, who may be looking after 100s of other Family Trusts, identify mine a bit quicker? Why change Family Trust Name?
There are 7 reasons to update or change your Family Trust Name:
1. correct spelling errors (e.g. Smitth Family Trust)
2. husband has died (e.g. Coral & Ted Smith Family Trust)
3. wife has divorced you (e.g. Joanne and John Lee Family Trust)
4. name is not as clever as you first thought (e.g. Scrooge McDuck Family Trust)
5. name may upset the ATO (e.g. Get out of Tax Family Trust)
6. your parents died
7. you may want to not be so obvious that the Family Trust is also a ‘Service Trust‘ for your main business (e.g. Williams Service Trust)
There are no taxation issues when you update the Family Trust name. With every document, you build on our website you get a letter on our law firm’s letterhead. The letter confirms there are no taxation issues when you correct the Family Trust name.
A Family Trust is a relationship. The trustee holds property on trust for the benefit of the beneficiaries.
A Family Trust deed sets out the terms of the trust. This includes the duties of the trustee in holding the trust property.
There are many reasons why the Appointor instructs the Trustee to amend the Family Trust Deed. The difficulty arises in deciding what kinds of amendments can be made to a trust deed without causing a resettlement. In other words, when do amendments to a Family Trust deed cause a new trust to be created?
We confirm that this Deed of Variation of the Family Trust to change the trust name does not trigger a resettlement.
We make special mention of the enclosed Minute regarding you needing to hold and retain, forever, original deeds. If you do not retain original signed deeds, you will not be able to open bank accounts or borrow money. Copies are not good enough. Even certified copies of Family Trust deeds and variations are not good enough.
You need to show the bank original trust deeds.
Ensure that both you and your accountant retain original deeds. They are precious and usually impossible to replace.
Telephone us. We can help you answer the questions to correct the Family Trust name.