What is the Governing State?
The trust is subject to the laws of the Governing State (or Territory). This helps locate the trust in a specific jurisdiction, if the trust or any parties with an interest in the trust ever needs to seek the assistance of a court to enforce their rights.
Also, the Governing State is generally the State or Territory that will have the right to stamp and impose stamp duty on the settlement of the trust deed.
We do not advise on stamp duty, but most State and Territory stamp duty legislation impose duty on a trust deed when it is first executed in that State/Territory.