Change Trustee of Family Trust

What is the purpose of this document?

The purpose of this document is to formally change the Trustee of your Family Trust. We strongly recommend you seek legal advice on whether a change in trustee will trigger potential duty issues, particularly if the trustee holds dutiable property in the ACT or NSW.

You can use this document if your Trust Deed has a position of an Appointor and gives the Appointor the power to appoint any additional Trustees or to appoint a new Trustee in the place of any Trustee that resigns. You can also use this document to retire a Trustee from your Trust if required by the terms of your Trust Deed.

The valid appointment of a Trustee is crucial to the operation of a trust. Remember, the Trustee is the legal owner of the trust property. The Trustee must deal with the trust property according to the terms of the Trust Deed. They are also under strict statutory obligations.

Note: Each State has specific legislation which says that a Family Trust that was set up with two or more Trustees cannot later be changed to have less than two human Trustees, unless the Trust Deed specifically allows so.

Therefore if your Trust Deed:

• expressly says that you cannot vary the Family Trust to have less than two human Trustees; or
• is silent on the matter,

go here and build this document: Family Trust - Update to allow Sole Trustee

Checklist is not available for this document.

Sample is not available for this document.

Number of Trustees after Update
• What is the purpose of this document?
• What do I need to complete this document?
• What about duty and registration of the Change of Trustee?
One Trustee
• What is the purpose of this document?
• What do I need to complete this document?
Sole Trustee
• What is the purpose of this document?
• What do I need to complete this document?
Trust Owns Dutiable Property
• What is dutiable property?
Trust Details
• What is the purpose of this document?
• What do I need to complete this document?
Date of Family Trust Deed
• What is the purpose of this document?
• What do I need to complete this document?
Trust Amendments
• How do I know if the Trust has been amended before?
• How do I know if the Trustee has changed?
Amendment Dates
• How do I know if the Trust has been amended before?
• How do I know if the Trustee has changed?
Current Trustee Details
• What are the Trustee’s details?
Resigning Trustee
• What are the Resigning Trustee‘s details?
Continuing Trustee
• What are the Continuing Trustee's details?
New Trustee
• A Human or a Company as Trustee?
• Who should be the new Trustee?
Appointor Details
• What is an Appointor?
• What are the Appointor's details?
Jurisdiction
• What is the purpose of this document?
• What do I need to complete this document?

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Number of Trustees after Update

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

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• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Find your Trust Deed and search for answers to the following questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust Deed signed? (i.e. what is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee(s) leaving? (if any)
  6. Who will be the Trustee(s) staying? (if any)
  7. Who will be the new Trustee(s)? (if any)

  This hint is provided by Law Central Legal.

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• What about duty and registration of the Change of Trustee?

  Duty laws vary between the states and territories.
  
  We strongly recommend you seek legal advice on whether a change in trustee will trigger potential duty issues, particularly if the trustee holds dutiable property in the ACT or NSW.
  
  In NSW and the ACT, a new trustee is not appointed until such time as the Deed of Appointment / Change of Trustee is registered with the Registrar-General (unless the Family Trust Deed specifically states that registration is not required for an effective appointment and that the trust fund will vest in the new trustee without registration). If you are unclear on this issue, please seek legal advice.
  
  

  This hint is provided by Law Central Legal.

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One Trustee

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

  ---

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• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Find your Trust Deed and search for answers to the following questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust Deed signed? (i.e. what is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee(s) leaving? (if any)
  6. Who will be the Trustee(s) staying? (if any)
  7. Who will be the new Trustee(s)? (if any)

  This hint is provided by Law Central Legal.

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Sole Trustee

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

  ---

  #

• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Find your Trust Deed and search for answers to the following questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust Deed signed? (i.e. what is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee(s) leaving? (if any)
  6. Who will be the Trustee(s) staying? (if any)
  7. Who will be the new Trustee(s)? (if any)

  This hint is provided by Law Central Legal.

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Trust Owns Dutiable Property

• What is dutiable property?

  Dutiable property includes land in New South Wales.
  
  However the definition of "dutiable property" covers many other things. For the full definition see section 11 of the Duties Act 1997 (NSW).
  
  We strongly recommend you seek legal advice on whether a change in trustee will trigger potential duty issues, particularly if the trustee holds dutiable property in the ACT or NSW.

  This hint is provided by Law Central Legal.

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Trust Details

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

  ---

  #

• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Get out your Trust Deed and hunt down the answers to these questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust signed? (What is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee leaving?
  6. Who will be the new Trustee?
  7. Are there any Trustees who will be continuing in their role as Trustee (Remaining Trustees)?
  
  

  This hint is provided by Law Central Legal.

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Date of Family Trust Deed

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

  ---

  #

• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Get out your Trust Deed and hunt down the answers to these questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust signed? (What is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee leaving?
  6. Who will be the new Trustee?
  7. Are there any Trustees who will be continuing in their role as Trustee (Remaining Trustees)?
  

  This hint is provided by Law Central Legal.

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Trust Amendments

• How do I know if the Trust has been amended before?

  Generally, you will have another document that says "Deed of Amendment" or "Deed of Variation". You need to note all variations that have been made to the Trust Deed. If you are not sure, you may need to seek legal advice.

  This hint is provided by Law Central Legal.

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• How do I know if the Trustee has changed?

  Have a look at your Trust Deed and your Deed of Variation. If the Trustee of the Deed of Variation is different to the Trustee of the original Trust Deed, the Trustees may have changed. Sometimes the Trustee is updated by Minutes. If you are unsure, check with your accountant or lawyer.

  This hint is provided by Law Central Legal.

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Amendment Dates

• How do I know if the Trust has been amended before?

  Generally, you will have another document that says "Deed of Amendment" or "Deed of Variation". You need to note all variations that have been made to the Trust Deed. If you are not sure, you may need to seek legal advice.

  This hint is provided by Law Central Legal.

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• How do I know if the Trustee has changed?

  Have a look at your Trust Deed and your Deed of Variation. If the Trustee of the Deed of Variation is different to the Trustee of the original Trust Deed, the Trustees may have changed. Sometimes the Trustee is updated by Minutes. If you are unsure, check with your accountant or lawyer.

  This hint is provided by Law Central Legal.

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Current Trustee Details

• What are the Trustee’s details?

  insert the Trustee’s first name into the First Name field, the Trustee’s middle name into the Middle Name field and the Trustee’s surname into the Last Name field.
  
  (Eg: Fred John Smith)
  
  If the Trustee is a Company: insert the name of the Company into the Company Name field.
  
  Insert the ACN (Australian Company Number) into the ACN field.
  
  (Eg: “Olympus Pty Ltd ACN 123 456 789”)
  

  This hint is provided by Law Central Legal.

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Resigning Trustee

• What are the Resigning Trustee‘s details?

  insert the Resigning Trustee’s first name into the First Name field, the Resigning Trustee’s middle name into the Middle Name field and the Resigning Trustee’s surname into the Last Name field.
  
  (Eg: Fred John Smith)
  
  If the Resigning Trustee is a Company: insert the name of the Company into the Company Name field.
  
  Insert the ACN (Australian Company Number) into the ACN field.
  
  (Eg: “Olympus Pty Ltd ACN 123 456 789”)
  

  This hint is provided by Law Central Legal.

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Continuing Trustee

• What are the Continuing Trustee's details?

  If the Continuing Trustee is Human: insert the Continuing Trustee's first name into the First Name field, the Continuing Trustee's middle name into the Middle Name field and the Continuing Trustee's surname into the Last Name field.
  
  (Eg: Fred John Smith)
  
  If the Continuing Trustee is a Company: insert the name of the Company into the Company Name field. Insert the ACN (Australian Company Number) into the ACN field.

  This hint is provided by Law Central Legal.

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New Trustee

• A Human or a Company as Trustee?

  You can have a Human Trustee or a Company Trustee. Or you can have both at the same time. You can nominate (i) yourself (ii) yourself and your spouse, or (iii) your company, as Trustee. You could nominate yourself and your company as Trustee - but why would you bother?
  
  What is the Trustee’s job? The Trustee holds the trust assets. The Trustee holds these assets in its own name – but only as Trustee. The Trustee only holds these assets as mere legal owner – not as beneficial owner. The Trustee holds these assets for the benefit of the beneficiaries.
  
  The Trustee also deals with the day-to-day running of the Trust for the benefit of the beneficiaries. The Trustee consults with the Appointor or Guardian concerning the distributions to the beneficiaries each year. The Appointor can appoint or sack the Trustee at any time. This is because, usually, the Appointor controls the Trustee and the Trust. You can be both the Appointor and the Trustee.
  
  If the Trustee is Human: insert the Trustee’s first name into the First Name field, the Trustee’s middle name into the Middle Name field and the Trustee’s surname into the Last Name field.
  
  (Eg: Fred John Smith)
  
  If the Trustee is a Company: insert the name of the Company into the Company Name field.
  
  Insert the ACN (Australian Company Number) into the ACN field.
  
  (Eg: “Olympus Pty Ltd ACN 123 456 789”)
  

  This hint is provided by Law Central Legal.

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• Who should be the new Trustee?

  A trustee can be either a company or one or more persons. The decision as to who will be the trustee is important. However, it depends on the purpose of the Trust, and the activities of the Trust. It also depends on the Trust Deed itself.
  
  For instance, some Trust Deeds have provisions to protect the trustee. If the trustee incurs a liability while acting honestly and in the best interests of the beneficiaries, the trustee may be indemnified from such liability. However, if the trust assets do not cover the liability, the trustee may be liable to cover the shortfall. Here the importance of a corporate or individual trustee comes in. If the trustee is an individual then this short fall may expose the trustee’s personal assets.
  
  Further, if there is no indemnity provision in the Trust Deed, the trustee will be personally liable for any debts the trustee incurs whilst acting as a trustee. This liability extends to the directors of a corporate trustee.
  
  Finally, the Trust Deed itself must be examined to determine who can be the new trustee. The Trust Deed may impose certain restrictions such as; the trustee cannot be a beneficiary of the trust, or may require the trustee to hold certain qualifications. If these conditions are not met, then any appointment of the new trustee may be deemed invalid.

  This hint is provided by Law Central Legal.

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Appointor Details

• What is an Appointor?

  This is the person or entity named in the Trust Deed whose permission is required to vary the Trust Deed. In particular, the Appointor is the person or persons with the power to remove and appoint the Trustee.
  
  It is common for the Appointor of a Family Trust to be one or both parents.
  

  This hint is provided by Law Central Legal.

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• What are the Appointor's details?

  If the Appointor is Human: insert the Appointor's first name into the First Name field, the Appointor's middle name into the Middle Name field and the Appointor's surname into the Last Name field.
  
  (Eg: Fred John Smith)
  
  

  This hint is provided by Law Central Legal.

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Jurisdiction

• What is the purpose of this document?

  You have a Family Trust (sometimes called a Discretionary Trust or Family Discretionary Trust). Though the “beneficiaries” of the Family Trust have a beneficial or equitable interest in the assets, the Trustee is the legal owner of the assets and looks after them on behalf of the beneficiaries).
  
  The Trustee has many obligations imposed by the law in dealing with the trust property.
  
  It is important that the old Trustees are properly dismissed and the new Trustees are correctly appointed. It is crucial to the operation of the trust that the Trustee is validly appointed and is the right person for the job.

  This hint is provided by Law Central Legal.

  ---

  #

• What do I need to complete this document?

  To start with you need to have your original Trust Deed and any other variations to the Trust Deed.
  
  Find your Trust Deed and search for answers to the following questions:
  
  1. What is the name of the Trust?
  2. Who is the Appointor of the Trust?
  3. When was the Trust Deed signed? (i.e. what is the date of the Trust Deed?)
  4. Has the Trust Deed been amended? If so, on what dates?
  
  All these answers should be in your Trust Deed.
  
  The name of the Trust and the date it was signed is generally on the front of the Trust. If not it may be on the last page where the signing clauses are.
  
  5. Who is the Trustee(s) leaving? (if any)
  6. Who will be the Trustee(s) staying? (if any)
  7. Who will be the new Trustee(s)? (if any)
  

  This hint is provided by Law Central Legal.

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This document has been prepared by the law practice Law Central Legal

Liability limited by a scheme approved under Professional Standards Legislation