Family Trust Update – Appointor, Trustee & Deed Update
Build this Family Trust Update to:
1. change your Trustees (if relevant)
2. change Appointors & Guardians (if relevant)
3. fully updates your Trust Deed (rules)
1. Why update the Trustee?
1. Trustee retires
2. Appointors sacks a Trustees
3. Go from a corporate Trustee to a human trustee
4. Go from human to a corporate Trustee (company as trustee)
5. Want a single Trustee only
6. Trustee dead, gone bankrupt or insolvent
2. Why update Appointor?
Appointors change for many reasons. People may wish to retire as an Appointor. Perhaps you would like to add your spouse as an additional Appointor. This Deed of Variation:
* allows the current Appointors and Guardians to retire or removed if dead
* confirms those current Appointors who remain as Appointors appoints any new Appointors
Example: Mum and Dad are the Appointors. Mum dies. Dad continues as the Appointor. Dad is happy to control the Family Trust by himself. Nothing in the Trust Deed or Mum’s Will states anything different. Therefore, all Dad is doing here is formally removing Mum as Appointor. Mum’s executor or next of kin signs on Mum’s behalf. The Family Trust may have a system or procedure for dealing with dead Appointors.
3. Why a Family Trust Update?
Just like your car, a Family Trust Deed needs updating and servicing. As well as updating your Trustees and Appointors we also update:
- Streaming – franking credits, Attribution and separate accounts to reduce CGT & income tax, complies with Thomas v FCT  FCAFC 57
- Bamford’s Case – definition of Net Income – satisfies ATO
- Loss Recoupment – retain and stream losses to particular beneficiaries
- Appointors to act unanimously – so two Appointors can’t take the assets over the 3rd Appointor
- Bank loans to the Family Trust – the required bank clauses and Indemnity rights (CBA, St. George, NAB, ANZ, BankWest, AMP, QLD, Macquarie, Citibank, ING, Bendigo, BankOne, & Westpac)
- Bank loan Compliance Certificate on our law firm’s letterhead
What categories are required for Bamford streaming?
Have a look at our ‘Sample document’ above. We have developed a unique group of categories with open classes for streaming. This list is based on the ATO audits we have attended and our legal research.
* Plus, categories mentioned in any Australian Taxation Office publication, from time to time; and
* any combination or part of the above
Unsure whether your Family Trust Deed needs updating? Speak to your Accountant or Financial Planner. They can email us a copy of your Trust Deed for us to look at, at no charge.
Press the ‘Sample document’ button to see the Family Trust Update. There are training videos and hints to help you as you build the Family Trust Update.
Update the Family Trust for Bamford streaming only:
Or, update Bamford streaming PLUS update the rest of the Deed:
Or update for Bamford streaming PLUS the Deed PLUS update the Appointor & Trustee:
Or just update the Trustee:
Or just update the Appointor:
To deal with Division 7A (loan or UPE from your company to the Family Trust):
Or, to forgive the ‘loan account’ and UPEs (loans from humans to Family Trust):
Change the name of your Family Trust:
To wind up and vest the Family Trust, when you no longer want it:
For more legal advice telephone us. We are a law firm. We can help you answer the questions.
Adjunct Professor, Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
Australia wide taxation and trust law firm
Mobile: 0477 796 959
National: 1800 141 612