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  • Trust

    Trust

    • Acknowledgement of Trust (already own asset) - $165
    • Change Appointor and/or Guardian of Family Trust - $110
    • Change of Name of Family Trust - $110
    • Change Trustee of Family Trust - $110
    • Dealing with Forgiven Debts (White Paper) - $55
    • Debt Recognition (including pre-Div 7A Loans) - $33
    • Declaration of Trust (before you buy) - $110
    • Div 7A Loan Agreement - $65
    • Div 7A Loan Agreement for UPE - $65
    • Family Trust - $165
    • Family Trust - Streaming & Bamford Update - $165
    • Family Trust - Update to Allow Change of Appointor and Guardian - $165
    • Family Trust - Update to allow Sole Trustee - $55
    • Family Trust - Update to Exclude Foreign Persons (NSW) - $198
    • Family Trust - Wind up/Vesting - $259
    • Forgiveness of Debt - $121
    • Opening Minutes for the Unit Trust - $33
    • Partnership Deed - $220
    • Release of Unpaid Trust Entitlement - $121
    • The new small business restructure roll-over rules in practice (White Paper) - $55
    • Trust Distribution Minutes Library for 2008/09 - $99
    • Trust Distribution Minutes Library for 2009/10 - $99
    • Trust Distribution Minutes Library for 2010/11 - $99
    • Trust Distribution Minutes Library for 2011/12 - $99
    • Trust Distribution Minutes Library for 2012/13 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2012/13 - Single-Use - $110
    • Trust Distribution Minutes Library for 2013/14 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2013/14 - Single-Use - $110
    • Trust Distribution Minutes Library for 2014/15 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2014/15 - Single-Use - $110
    • Trust Distribution Minutes Library for 2015/16 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2015/16 - Single-Use - $110
    • Trust Distribution Minutes Library for 2016/17 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2016/17 - Single-Use - $110
    • Trust Distribution Minutes Library for 2017/18 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2017/18 - Single-Use - $110
    • Trust Distribution Minutes Library for 2018/19 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2018/19 - Single-Use - $110
    • Trust Distribution Minutes Library for 2019/20 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2019/20 - Single-Use - $121
    • Trust Distribution Minutes Library for 2020/21 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2020/21 - Single-Use - $121
    • Trust Distribution Minutes Library for 2021/22 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2021/22 - Single-Use - $121
    • Trust Distribution Minutes Library for 2022/23 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2022/23 - Single-Use - $132
    • Trust Distribution Minutes Library for 2023/24 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2023/24 - Single-Use - $132
    • Trust Distribution Minutes Library for 2024/25 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2024/25 - Single-Use - $132
    • Unit Trust - $165
    • Unit Trust - Add New Member Kit - $110
  • Superannuation

    Superannuation

    • Acknowledgement of Trust (already own asset) - $165
    • Commercial Lease - $275
    • Declaration of Trust (before you buy) - $110
    • Derivative Risk Statement for SMSF - $65
    • Investment Strategy for Self Managed Super 15/16 - $65
    • Investment Strategy for Self Managed Super 16/17 - $65
    • Investment Strategy for Self Managed Super 17/18 - $65
    • Investment Strategy for Self Managed Super 18/19 - $65
    • Investment Strategy for Self Managed Super 19/20 - $65
    • Investment Strategy for Self Managed Super 20/21 - $65
    • Investment Strategy for Self Managed Super 21/22 - $65
    • Investment Strategy for Self Managed Super 22/23 - $65
    • Investment Strategy for Self Managed Super 23/24 - $65
    • Investment Strategy for Self Managed Super 24/25 - $65
    • Pension Pack for Self Managed Super - $299
    • Product Disclosure Statement (general) - $66
    • Product Disclosure Statement (Pension only) - $99
    • Self Managed Superannuation Fund Deed - $165
    • SMSF - Minute to Appoint Administrator - $33
    • SMSF - Minute to Appoint an Auditor - $33
    • SMSF - Minute to Approve Financial Statements - $33
    • SMSF - Minute to Insure The Members - $33
    • SMSF - Update Rules - $165
    • SMSF Limited Recourse Borrowing Arrangement - $330
    • SMSF Restricted Commercial Property Assessment - $695
    • SMSF Restricted Residential Property Assessment - $315
    • Statutory Declaration - $0
  • Estate Planning

    Estate Planning

    • Codicil to change the Executor - $99
    • Confidentiality Agreement (Non Disclosure) - $99
    • Debt Recognition (including pre-Div 7A Loans) - $33
    • Enduring Power of Attorney - NSW - $55
    • Enduring Power of Attorney - SA - $55
    • Enduring Power of Attorney - WA - $55
    • Enduring Power of Attorney (Financial, Personal/Health) - QLD - $55
    • Enduring Power of Guardianship - NSW - $55
    • Enduring Power of Guardianship - WA - $55
    • Power Of Attorney By Company - $99
    • Will - Married or Defacto No Children - $95
    • Will - Married or Defacto with Children - $95
    • Will - Single No Children - $110
    • Will - Single With Children - $110
  • Commercial

    Commercial

    • Advanced Legal Health Check for Businesses - $18
    • Buy a House with Friends Agreement - $110
    • Commercial Lease - $275
    • Confidentiality Agreement (Non Disclosure) - $99
    • Co-Owners Agreement - $110
    • Dealing with Forgiven Debts (White Paper) - $55
    • Debt Recognition (including pre-Div 7A Loans) - $33
    • Declaration of Trust (before you buy) - $110
    • Demand and Statement of Claim for Debt - NSW - $88
    • Demand and Summons for Debt - VIC - $88
    • Demand and Summons for Debt - WA - $88
    • Div 7A Loan Agreement - $65
    • Div 7A Loan Agreement for UPE - $65
    • Forgiveness of Debt - $121
    • Loan Agreement (No Security) - $110
    • Release of Unpaid Trust Entitlement - $121
    • Statutory Declaration - $0
    • The new small business restructure roll-over rules in practice (White Paper) - $55
  • Employment

    Employment

    • Confidentiality Agreement (Non Disclosure) - $99
    • Employment - Conduct Issues Letter - $33
    • Employment - Employee Expenses Policy - $55
    • Employment - Performance Issues Letter - $33
    • Employment - Request for Medical Information - $33
    • Employment - Termination Letter - $33
    • Employment - Transferring Employee Letter - $33
    • Employment Contract - $120
    • Independent Contractors Agreement - $110
    • Partnership Deed - $220
    • Statutory Declaration - $0
  • Company

    Company

    • Acknowledgement of Trust (already own asset) - $165
    • Adopt Committee Recommendations kit - $33
    • Appoint a Committee kit - $33
    • Appoint an Alternate Director kit - $33
    • Appoint Managing Director & Confer Powers kit - $33
    • Buy a House with Friends Agreement - $110
    • Change Registered Office kit - $33
    • Commercial Lease - $275
    • Company (ELodgement) - $716
    • Company (No Elodgement) - $99
    • Company Constitution Update - $99
    • Confidentiality Agreement (Non Disclosure) - $99
    • Co-Owners Agreement - $110
    • Debt Recognition (including pre-Div 7A Loans) - $33
    • Declaration of Trust (before you buy) - $110
    • Demand and Statement of Claim for Debt - NSW - $88
    • Demand and Summons for Debt - VIC - $88
    • Demand and Summons for Debt - WA - $88
    • Director‘s Indemnity Agreement - Compulsory Insurance - $197
    • Director‘s Indemnity Agreement - No Insurance - $197
    • Div 7A Loan Agreement - $65
    • Div 7A Loan Agreement for UPE - $65
    • Employment Contract - $120
    • Family Trust - Wind up/Vesting - $259
    • Forgiveness of Debt - $121
    • Independent Contractors Agreement - $110
    • Loan Agreement (No Security) - $110
    • Minutes for Members to Inspect Books - $33
    • Minutes for Resigning Director - $33
    • Opening Minutes for the Unit Trust - $33
    • Partnership Deed - $220
    • Power Of Attorney By Company - $99
    • Release of Unpaid Trust Entitlement - $121
    • Remove a Managing Director kit - $33
    • Remove and Replace a Director kit - $44
    • Replace Company Secretary kit - $44
    • Self Managed Superannuation Fund Deed - $165
    • Statutory Declaration - $0
    • Transfer of Shares Kit - $0
    • Unit Trust - $165
    • Unit Trust - Add New Member Kit - $110
  • CPD Webinars

    CPD Webinars

    • CPD Webinar - End Of Financial Year SMSF Planning 2025 - $110
    • CPD Webinar - End Of Financial Year Tax Rollup 2025 - $110
    • CPD Webinar - Small Business Restructures and Director Penalty Notices - $110
    • CPD Webinar - Tax and Cryptocurrency – A Square Peg in a Round Hole - $110
    • CPD Webinar - UPEs and Div 7A – Implications of the Recent Bendel Decision - $110
    • CPD Webinar - When Directors are Personally Liable - $110
    • Webinar On Demand - Foreign Trust Taxation Issues - $110
    • Webinar On Demand - Advising on Family Trusts in the 21st Century - $110
    • Webinar On Demand - AI in Professional Practices - Risks and Benefits - $110
    • Webinar On Demand - Drafting Estate Planning Documents to meet Litigation Risks - $110
    • Webinar On Demand - Employee Share Schemes - $99
    • Webinar On Demand - Family Law and Trusts - $110
    • Webinar On Demand - How Binding are Financial Agreements - $110
    • Webinar On Demand - Professional Advisers as Appointor of their Client’s Family Trust - $110
    • Webinar On Demand - Recent Changes in Family Law - $99
    • Webinar On Demand - Sexual Harassment Laws in Australia - $110
    • Webinar On Demand - Tax & Family Trusts - $99
    • Webinar On Demand - Testamentary Trusts 101 - $110
    • Webinar On Demand - Trust Distributions and Section 100A - $99
    • Webinar On Demand - When Directors are Personally Liable - $110
    • Webinar On Demand - Where Death Benefit Nominations Go Wrong - $110
  • All documents

    All documents

    • Acknowledgement of Trust (already own asset) - $165
    • Adopt Committee Recommendations kit - $33
    • Advanced Legal Health Check for Businesses - $18
    • Appoint a Committee kit - $33
    • Appoint an Alternate Director kit - $33
    • Appoint Managing Director & Confer Powers kit - $33
    • Buy a House with Friends Agreement - $110
    • Change Appointor and/or Guardian of Family Trust - $110
    • Change of Name of Family Trust - $110
    • Change Registered Office kit - $33
    • Change Trustee of Family Trust - $110
    • Codicil to change the Executor - $99
    • Commercial Lease - $275
    • Company (ELodgement) - $716
    • Company (No Elodgement) - $99
    • Company Constitution Update - $99
    • Confidentiality Agreement (Non Disclosure) - $99
    • Co-Owners Agreement - $110
    • CPD Webinar - End Of Financial Year SMSF Planning 2025 - $110
    • CPD Webinar - End Of Financial Year Tax Rollup 2025 - $110
    • CPD Webinar - Small Business Restructures and Director Penalty Notices - $110
    • CPD Webinar - Tax and Cryptocurrency – A Square Peg in a Round Hole - $110
    • CPD Webinar - UPEs and Div 7A – Implications of the Recent Bendel Decision - $110
    • CPD Webinar - When Directors are Personally Liable - $110
    • Dealing with Forgiven Debts (White Paper) - $55
    • Debt Recognition (including pre-Div 7A Loans) - $33
    • Declaration of Trust (before you buy) - $110
    • Demand and Statement of Claim for Debt - NSW - $88
    • Demand and Summons for Debt - VIC - $88
    • Demand and Summons for Debt - WA - $88
    • Derivative Risk Statement for SMSF - $65
    • Director‘s Indemnity Agreement - Compulsory Insurance - $197
    • Director‘s Indemnity Agreement - No Insurance - $197
    • Disclaimer - Email - $55
    • Div 7A Loan Agreement - $65
    • Div 7A Loan Agreement for UPE - $65
    • Employment - Conduct Issues Letter - $33
    • Employment - Employee Expenses Policy - $55
    • Employment - Performance Issues Letter - $33
    • Employment - Request for Medical Information - $33
    • Employment - Termination Letter - $33
    • Employment - Transferring Employee Letter - $33
    • Employment Contract - $120
    • Enduring Power of Attorney - NSW - $55
    • Enduring Power of Attorney - SA - $55
    • Enduring Power of Attorney - WA - $55
    • Enduring Power of Attorney (Financial, Personal/Health) - QLD - $55
    • Enduring Power of Guardianship - NSW - $55
    • Enduring Power of Guardianship - WA - $55
    • Family Trust - $165
    • Family Trust - Streaming & Bamford Update - $165
    • Family Trust - Update to Allow Change of Appointor and Guardian - $165
    • Family Trust - Update to allow Sole Trustee - $55
    • Family Trust - Update to Exclude Foreign Persons (NSW) - $198
    • Family Trust - Wind up/Vesting - $259
    • Forgiveness of Debt - $121
    • Independent Contractors Agreement - $110
    • Investment Strategy for Self Managed Super 15/16 - $65
    • Investment Strategy for Self Managed Super 16/17 - $65
    • Investment Strategy for Self Managed Super 17/18 - $65
    • Investment Strategy for Self Managed Super 18/19 - $65
    • Investment Strategy for Self Managed Super 19/20 - $65
    • Investment Strategy for Self Managed Super 20/21 - $65
    • Investment Strategy for Self Managed Super 21/22 - $65
    • Investment Strategy for Self Managed Super 22/23 - $65
    • Investment Strategy for Self Managed Super 23/24 - $65
    • Investment Strategy for Self Managed Super 24/25 - $65
    • Loan Agreement (No Security) - $110
    • Minutes for Members to Inspect Books - $33
    • Minutes for Resigning Director - $33
    • Opening Minutes for the Unit Trust - $33
    • Partnership Deed - $220
    • Pension Pack for Self Managed Super - $299
    • Power Of Attorney By Company - $99
    • Product Disclosure Statement (general) - $66
    • Product Disclosure Statement (Pension only) - $99
    • Release of Unpaid Trust Entitlement - $121
    • Remove a Managing Director kit - $33
    • Remove and Replace a Director kit - $44
    • Replace Company Secretary kit - $44
    • Self Managed Superannuation Fund Deed - $165
    • SMSF - Minute to Appoint Administrator - $33
    • SMSF - Minute to Appoint an Auditor - $33
    • SMSF - Minute to Approve Financial Statements - $33
    • SMSF - Minute to Insure The Members - $33
    • SMSF - Update Rules - $165
    • SMSF Limited Recourse Borrowing Arrangement - $330
    • SMSF Restricted Commercial Property Assessment - $695
    • SMSF Restricted Residential Property Assessment - $315
    • Statutory Declaration - $0
    • The new small business restructure roll-over rules in practice (White Paper) - $55
    • Transfer of Shares Kit - $0
    • Trust Distribution Minutes Library for 2008/09 - $99
    • Trust Distribution Minutes Library for 2009/10 - $99
    • Trust Distribution Minutes Library for 2010/11 - $99
    • Trust Distribution Minutes Library for 2011/12 - $99
    • Trust Distribution Minutes Library for 2012/13 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2012/13 - Single-Use - $110
    • Trust Distribution Minutes Library for 2013/14 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2013/14 - Single-Use - $110
    • Trust Distribution Minutes Library for 2014/15 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2014/15 - Single-Use - $110
    • Trust Distribution Minutes Library for 2015/16 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2015/16 - Single-Use - $110
    • Trust Distribution Minutes Library for 2016/17 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2016/17 - Single-Use - $110
    • Trust Distribution Minutes Library for 2017/18 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2017/18 - Single-Use - $110
    • Trust Distribution Minutes Library for 2018/19 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2018/19 - Single-Use - $110
    • Trust Distribution Minutes Library for 2019/20 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2019/20 - Single-Use - $121
    • Trust Distribution Minutes Library for 2020/21 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2020/21 - Single-Use - $121
    • Trust Distribution Minutes Library for 2021/22 - Multi-Use - $350
    • Trust Distribution Minutes Library for 2021/22 - Single-Use - $121
    • Trust Distribution Minutes Library for 2022/23 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2022/23 - Single-Use - $132
    • Trust Distribution Minutes Library for 2023/24 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2023/24 - Single-Use - $132
    • Trust Distribution Minutes Library for 2024/25 - Multi-Use - $363
    • Trust Distribution Minutes Library for 2024/25 - Single-Use - $132
    • Unit Trust - $165
    • Unit Trust - Add New Member Kit - $110
    • Webinar On Demand - Foreign Trust Taxation Issues - $110
    • Webinar On Demand - Advising on Family Trusts in the 21st Century - $110
    • Webinar On Demand - AI in Professional Practices - Risks and Benefits - $110
    • Webinar On Demand - Drafting Estate Planning Documents to meet Litigation Risks - $110
    • Webinar On Demand - Employee Share Schemes - $99
    • Webinar On Demand - Family Law and Trusts - $110
    • Webinar On Demand - How Binding are Financial Agreements - $110
    • Webinar On Demand - Professional Advisers as Appointor of their Client’s Family Trust - $110
    • Webinar On Demand - Recent Changes in Family Law - $99
    • Webinar On Demand - Sexual Harassment Laws in Australia - $110
    • Webinar On Demand - Tax & Family Trusts - $99
    • Webinar On Demand - Testamentary Trusts 101 - $110
    • Webinar On Demand - Trust Distributions and Section 100A - $99
    • Webinar On Demand - When Directors are Personally Liable - $110
    • Webinar On Demand - Where Death Benefit Nominations Go Wrong - $110
    • Will - Married or Defacto No Children - $95
    • Will - Married or Defacto with Children - $95
    • Will - Single No Children - $110
    • Will - Single With Children - $110
  • Bulletin

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Forgiveness of Debt

Forgiveness of Debt

Price ($AUD): $121
Platinum Price ($AUD): $110 [?]

Estimated Time to Build: 5 - 7 Minutes
Jurisdiction: Australia Wide

Click to Start
  • Overview
  • Checklist
  • Sample
  • Legal Tutor
  • Author
  • Also known as Release of Debt.

    This document provides for a debt to be forgiven by way of the creditor entering into a deed. The Debt can be either a certain amount of money owed to the Creditor (or any outstanding loan account between a beneficiary and a trust).

    With respect to a beneficiary loan account being forgiven, this item will need to be clearly and correctly recorded as a loan to the trust as opposed to an unpaid trust entitlement.

    The document allows for a consideration to be made to forgive the debt in question or has the consideration as the parties entering into this Deed.

    The document is not suitable for a beneficiary wishing to release a Trustee from his obligations relating to an unpaid trust entitlement. Use our Release of Unpaid Trust Entitlement document for this scenario.

    Warning
    Forgiving a debt can have certain tax and stamp duty/transfer duty ramifications. You can purchase (free for Platinum Members) our White Paper on the tax effects of debt forgiveness/release of unpaid trust entitlement here. It is important that advice is sought from a lawyer or accountant on this matter before using this document.
  • Checklist is not available for this document.

  • Sample is not available for this document.

    • Creditor Details
      • Who is the 'Creditor'?
      • Beneficiaries forgiving Family Trust loan account?
      • Is the creditor a trust?
      • How do I write the name of company?
      • What is an ACN?
      • Which address do I enter?
      • Does a lawyer check what I am doing?
      • What if there are 2 Creditors?
      Debtor Details
      • Who is the 'Debtor'?
      • Family Trust 'loan accounts'
      • Is the debtor a trust?
      • What is an ACN?
      • How do I write the name of company?
      • Which address do I enter?
      • What if there are 2 Debtors?
      Debt Type
      • Amount of the Debt?
      • Specific Amount?
      • Beneficiary Loan Accounts
      Consideration
      • Natural Love and Affection - Natural Person
      • Warning Tax and Stamp Duty/Transfer Duty Consequences
      • Specific Sum of Money?

      Creditor Details

      • Who is the 'Creditor'?

        The Creditor is the person or company who is owed money.

        For example:
        • The person who lent the money.
        • The person who sold goods and has not been paid for them.
        • The company that did work for someone and is now owed money for it.

        The 'Debtor' is the party who owes money to the Creditor.

        This hint is provided by Law Central Legal.


        #

      • Beneficiaries forgiving Family Trust loan account?

        This document allows for a beneficiary loan account to be forgiven when that item is clearly and correctly recorded as a loan in the trust books.

        The document is not suitable for a beneficiary wishing to release a Trustee from his obligations relating to an unpaid trust entitlement. The debt that is to be forgiven needs to be correctly classified as a loan.

        The financial accounts of the trust should have recorded that item as a loan as opposed to an unpaid trust entitlement.

        Should you wish to deal with an unpaid trust entitlement then we recommend you look at our Release of Unpaid Trust Entitlement document.

        This hint is provided by Law Central Legal.


        #

      • Is the creditor a trust?

        If the creditor is a trust then you need to put in the details of the trustee:

        For a single human trustee-
        1. click on human
        2. First Name: Fred
        Middle Name: James
        Last Name: Smith
        Capacity: as trustee for the Smith Family Trust

        For a company as trustee-
        1. click on company
        2. Company Name: ABC Pty Ltd
        ACN: 123 123 123
        Capacity: as trustee for the ABC Family Trust

        This hint is provided by Law Central Legal.


        #

      • How do I write the name of company?

        You write the name of your company exactly as it appears on your Company registration from when you first registered with ASIC.

        E.g. Manley Proprietary Ltd

        Correct way is: Manley Proprietary Ltd

        Incorrect: Manley Pty Limited
        or Manley Proprietary Limited
        or Manley Pty Ltd

        This hint is provided by Law Central Legal.


        #

      • What is an ACN?

        "ACN" stands for Australian Company Number. It is a unique number given to every registered Australian company. You can find the "ACN" of your company on the Certificate of Registration you received from ASIC when you first registered your company.

        The ACN of a company usually has nine digits.

        This is an example of an ACN: ACN 999 250 250.

        This hint is provided by Law Central Legal.


        #

      • Which address do I enter?

        Enter the residential or physical address of the creditor. i.e. The number and street.

        Do not use the postal address.

        This hint is provided by Law Central Legal.


        #

      • Does a lawyer check what I am doing?

        No. There are no lawyers at LawCentral.com.au. LawCentral does not give legal advice. It is only a website that lawyers put documents onto.

        This hint is provided by Law Central Legal.


        #

      • What if there are 2 Creditors?

        This document only caters for one debtor and one creditor.

        If you have multiple parties, please contact us at support@lawcentral.com.au.

        This hint is provided by Law Central Legal.


        #

      Debtor Details

      • Who is the 'Debtor'?

        This is the person or company who owes money.

        This hint is provided by Law Central Legal.


        #

      • Family Trust 'loan accounts'

        This document allows for a beneficiary loan account to be forgiven when that item is clearly and correctly recorded as a loan in the trust books.

        The document is not suitable for a beneficiary wishing to release a Trustee from his obligations relating to an unpaid trust entitlement. The debt that is to be forgiven needs to be correctly classified as a loan.

        The financial accounts of the trust should have recorded that item as a loan as opposed to an unpaid trust entitlement.

        Should you wish to deal with an unpaid trust entitlement then we recommend you look at our Release of Unpaid Trust Entitlement document.

        This hint is provided by Law Central Legal.


        #

      • Is the debtor a trust?

        For a single human trustee-
        1. click on human
        2. First Name: Fred
        Middle Name: James
        Last Name: Smith
        Capacity: as trustee for the Smith Family Trust

        For a company as trustee-
        1. click on company
        2. Company Name: ABC Pty Ltd
        ACN: 123 123 123
        Capacity: as trustee for the ABC Family Trust

        This hint is provided by Law Central Legal.


        #

      • What is an ACN?

        "ACN" stands for Australian Company Number. It is a unique number given to every registered Australian company. You can find the "ACN" of your company on the Certificate of Registration you received from ASIC when you first registered your company.

        The ACN of a company usually has nine digits.

        This is an example of an ACN: ACN 999 250 250.

        This hint is provided by Law Central Legal.


        #

      • How do I write the name of company?

        You write the name of your company exactly as it appears on your Company registration from when you first registered with ASIC.

        E.g. Manley Proprietary Ltd

        Correct way is: Manley Proprietary Ltd

        Incorrect: Manley Pty Limited
        or Manley Proprietary Limited
        or Manley Pty Ltd

        This hint is provided by Law Central Legal.


        #

      • Which address do I enter?

        Enter the residential or physical address of the debtor. i.e. The number and street.

        Do not enter the postal address.

        This hint is provided by Law Central Legal.


        #

      • What if there are 2 Debtors?

        This document only caters for one debtor and one creditor.

        If you have multiple parties, please contact us at support@lawcentral.com.au.

        This hint is provided by Law Central Legal.


        #

      Debt Type

      • Amount of the Debt?

        This is the total value of the money owed to you. This includes interest (if any) on the original amount of the debt.

        This hint is provided by Law Central Legal.


        #

      • Specific Amount?

        Select this option if you want to state the exact amount of the debt you are forgiving. You can then enter the specific amount of the debt on the next page.

        This hint is provided by Law Central Legal.


        #

      • Beneficiary Loan Accounts

        This document allows for a beneficiary loan account to be forgiven when that item is clearly and correctly recorded as a loan in the trust books.

        The document is not suitable for a beneficiary wishing to release a Trustee from his obligations relating to an unpaid trust entitlement. The debt that is to be forgiven needs to be correctly classified as a loan.

        The financial accounts of the trust should have recorded that item as a loan as opposed to an unpaid trust entitlement.

        Should you wish to deal with an unpaid trust entitlement then we recommend you look at our Release of Unpaid Trust Entitlement document.

        This hint is provided by Law Central Legal.


        #

      Consideration

      • Natural Love and Affection - Natural Person

        The term “natural love and affection” is an exception referred to in section 245.40(e) of the Income Tax Assessment Act 1997 (Cth).

        Please note ATO Taxation Determination TD 2022/1 published on 9 February 2022 which states:

        "Income tax: commercial debt forgiveness - does the exclusion for debts forgiven for reasons of natural love and affection require that the creditor be a natural person?"

        "Ruling
        1. Yes - the exclusion for debts forgiven for reasons of natural love and affection requires that the creditor is a natural person."

        This hint is provided by Law Central Legal.


        #

      • Warning Tax and Stamp Duty/Transfer Duty Consequences

        When entering into this Deed there may be tax and stamp duty/transfer duty consequences. In particular the rules in Division 245 of the Income Tax Assessment Act 1997 (Cth) set out the taxation implications for a debtor when a commercial debt is forgiven.

        Other tax issues which need to be considered include:
        1 deductibility of interest;
        2 capital gains tax;
        3 fringe benefits tax – where the Debtor is an employee of the Creditor;
        4 other provisions of the tax legislation; and
        5 stamp duty/transfer duty.

        We recommend that you obtain advice from a lawyer or accountant on the tax and stamp duty/transfer duty consequences before using this document.

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      • Specific Sum of Money?

        Select this option if you want to state the specific sum of the money being paid by the Debtor to the Creditor. You can then enter the specific sum of money on the next page.

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

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