Trust Deed Vesting

If you no longer require your trust, you may be able to vest the deed. Our package includes all documentation required to close a discretionary trust or unit trust that is no longer needed.

How to vest a trust?

Generally, a trust deed will specify a date or an event on which the interests in the trust must vest. Most deeds describe this as the termination date or vesting date. The way in which a trust can be vested depends on the terms of the trust. In order to amend or bring forward your vesting date the deed must have the appropriate power or provisions. You must carefully consider the terms of the deed to ensure the specific powers or general powers allow the Trustee to execute such changes. In the event, the deed does not provide the Trustee with the powers to bring forward the vesting date, you may need to approach the relevant court to make changes to the vesting date. There may be income tax implications by vesting a trust, including capital gains (CGT) consequences.

What do you need to consider?

• Power to amend - Before a deed of variation is prepared, the Trustee must engage independent legal advice to ensure there is the appropriate power to amend (bring forward) exists.
• Trustees Obligations – The Trustee must understand their obligations around vesting the trust. If not considered correctly, there can be significant tax and trust law implications for the Trustee and Beneficiaries.
• Further professional advice – You should consider applying for a private ruling from the relevant revenue office. A ruling provides advice on the interpretation of legislation based on your specific situation. Rulings is based on request once you identify a tax technical or legislative issue which makes you uncertain of your liability. If a ruling is not obtained, the revenue office may impose a surcharge in the future.
• Balance sheet is $0 – You must ensure all the beneficial entitlements have been paid to the beneficiaries and ensure the Trusts liabilities have been discharged prior to executing any deed of variation. You must obtain independent legal advice prior to executing any Deed of Variation.

Documents included with the Shelf Companies Package

• Deed of Vesting