Nominee trust deed in respect of shares

Nominee trust deed in respect of shares

Regular price $71.00

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

This document can be used to set up a trust in relation to the holding of shares on trust on behalf of a beneficiary.

As to the meaning of "nominee trust" or "bare trust", please, refer to:

·                Australian Securities Commission v Bank Leumi Le-Israel (1995) 134 ALR 101; 18 ACSR 639; BC9501504;

·                Corumo Holdings Pty Ltd v C Itoh Ltd (1991) 24 NSWLR 370; 5 ACSR 720 and the judgment of Gummow J in Herdegen v FCT (1988) 84 ALR 271;

·                "English & Australia Law as to Trusts Affecting Shares" (1998) 72 ALJ 116; and

·                "Nominee Shareholders: Legal, Commercial and Risk Aspects" (2005) 18 AJCL 288.

Considerations on stamp duty

Ad valorem rates of stamp duty may result from the execution of nominee trust deeds in certain circumstances. General comments regarding stamp duty are set out below; however, certain share transactions (especially ASX listed shares) in many jurisdictions do not attract stamp duty.

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.