TRUSTS: Blow the dust off that deed

Posted on October 2nd, 2009

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Published by Law Society of New South Wales

Many clients are totally unaware of the limited life of trusts.

Trust deeds can sit in safe custody for years without being looked at. But if you are planning to do something with a trust, it is important to check the trust deed first. You may be in for a shock if you find that the date when the trust will mature is coming up soon.

All discretionary trusts must come to an end within a specified period (80 years from the date of creation for modern trusts in NSW). Most discretionary trusts allow the trustee to nominate an earlier date.

Some discretionary trusts, especially those created in the 1960s and ’70s, have what now seems an incredibly early vesting date. When the trust vests, the beneficial interest in trust assets passes to the beneficiaries, thus potentially triggering stamp duty and capital gains tax.

Speak to Mullane & Lindsay Solicitors for information on trusts.

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