Disc Trust - Adding a Second Appointer?

Hi Gang,

Would adding a second appointer (eg the spouse) to an existing discretionary trust constitute a resettlement of the trust?

The existing sole appointer is a primary beneficiary. The additional appointer is also a primary beneficiary.

Thanks in advance - Gordon

 

Resettlement usually concentrates on the trust property and the rights of beneficiaries.

Get somebody to check the deed closely.

Adding a primary beneficiary *might* be a significant change - even when they are a member of a class of potential beneficiaries - check the deed !!

Cheers,

Rob

 

First question is what assets are currently in the trust ?
If there are no assets then resettlement is not of great concern.

I have added/ removed appointors for clients & generally speaking it has not created a resettlement even when there has been assets in the trust.

The deed will need to be reviewed.

In any case particularly if you do have assets in the trust then please seek legal advice

NickM

 

Hi Nick,

Thanks very much for your reply.

In terms of assets there are a couple of investment properties and some shares in the disc trust which is why I'm concerned about resettlement.

I will certainly have the deed reviewed and seek legal advice of course before taking any action. However past experience has well and truely taught me to do my own research first as I have on more than one occasion been given poor and/or very suspect advice by legal professionals.

Cheers - Gordon

 

Good strategy + it pays to at least be partly informed
This may help
http://www.osr.nsw.gov.au/lib/doc/rulings/rrsd24.pdf

nickm