Deed of variation of unit trust joining unit holders

Deed of variation of unit trust joining unit holders

Regular price $71.00

This precedent is a template deed of variation of unit trust joining unit holders.

The unit trust where there are joining unit holders can be amended by way of a deed signed by the trustee and the unit holders.

This deed of variation of unit trust should be used where all the unit holders are able to be joined in or required to be joined in. If the unit holders are not joining in the deed of variation, precedent “Deed of variation of unit trust not joining unit holders” should be used. Unless the trust deed gives the trustee a power of variation without unit holder consent, the unit holders should be parties.

A deed of variation of trust may attract ad valorem rates of stamp duty. Inquiries should be made in this regard prior to execution of the deed especially where beneficiaries (including default beneficiaries) or a class of beneficiaries are inserted or removed from the trust deed or where the variation could amount to a resettlement. See Australian Stamp Duties Law, LexisNexis Butterworths, Australia, 2002, looseleaf, Vol 1 at [23.0120], where the authors discuss the stamp duty position regarding a variation of trust in each state and territory, eg in New South Wales, see Revenue Ruling DUT 017.

A deed of variation of trust may attract adverse tax consequences. See the approach of the Australian Taxation Office (ATO) to variations of trust set out in the ATO's published article "Creation of a new trust - Statement of Principles August 2001" which refers to the High Court decision in Commissioner of Taxation v Commercial Nominees of Australia Ltd (2001) 179 ALR 655; 47 ATR 220; [2001] HCA 33; BC200102753.

For a template trust deed, see the precedent “Trust deed”.