About the Family Trust - Update Rules, Appointor or Trustee

Do you need to change the Trustee of your family trust? You can use this kit to:
• Remove a Trustee
• Replace a Trustee
• Appoint an additional Trustee.

Do you need to change the Appointor of your trust? You can use this kit to:
• Remove an Appointor
• Replace an Appointor
• Appoint an additional Appointor
• Change backup Appointors

As you are already making changes to your trust deed, why not update it to include the latest taxation benefits. These include:
• Adding Streaming Provisions
• Inserting Franking Credit Provisions
• Allowing for attribution of profits
• Augmentation of Trustees powers
• Lost recoupment provisions

Further, we have included an ‘equalisation clause’ which equalises the ‘trust income’ in section 97 of the Tax Act with the net income in section 95(1) of the Tax Act should the trustee not make a different decision. So, it is up to the trustee to decide how to calculate the trust income for section 97 purposes. The Full Federal Court in Cajkusic and Bamford and the ATO Practice Statements PS 2005/1 and 2009/7 will support such an approach, as long as there is a matching up of the income distribution and tax liability.

Without the latest trust powers you are not getting the full benefit from your family trust. The trustee may even be doing things that are not allowed by the trust deed – this could land you in deep trouble.

You can of course update your trust without changing the Trustee or Appointor. Why Wait? Start building one now! There is NO CHARGE for going through the Document Building Process. You can read all the hints for free. You can see the Summary for free.