Nominee trust deed in respect of land

Nominee trust deed in respect of land

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This precedent is a template nominee trust deed in respect of land.

This precedent is designed for use where a nominee trustee enters into a contract for sale of land on behalf of another person or company who pays all of the purchase moneys. This precedent is to be used if the property is bought by the beneficiary in a trust structure.

Considerations on stamp duty

If the trustee has an interest in a trust estate, e.g. where A (the trustee) holds the trust estate for A (the trustee) as to one half and for B (the beneficiary) as to the other half, the "trust property" in the trust deed should be described as "a one half interest as tenant in common" in the property otherwise stamp duty concessions may not be available. See Australian Stamp Duties Law, LexisNexis Butterworths, Australia, 2002, loose-leaf, Vol 1 at [25.0380] "The apparent purchaser - must be separate from real purchaser", which shows the need for the trustee and beneficiary to be completely separate so far as the trust estate is concerned. See also Akkerman v Commissioner of Stamp Duties (NSW) (1988) 19 ATR 1198.

A nominee trust deed may attract ad valorem rates of stamp duty and inquiries should be made in this regard prior to execution of the deed. For New South Wales, see section 55 of the Duties Act 1997 (NSW) (Duties Act) and Revenue Ruling DUT 30.

In some states, the use of the word "vested" in the statutory provisions governing the stamp duty concessions for nominee trust deeds would indicate that the deed should not be executed until after completion of the agreement for sale or even until after registration at the Land Titles Office.

This precedent has been authored for LexisNexis  by Selwyn L Black Peter D Carroll, Carroll & O’Dea and updated by Jane Garber-Rosenzweig, Gable Lawyers.

This precedent is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.