Back to KnowledgeBase

We have a Discretionary Trust Deed prepared by you. The Court has ordered that the wife be taken off the Family Trust as a beneficiary and an appointor. We have found the form on the website to remove appointors. Please advise how we remove the wife as a beneficiary?

While we are able to assist in removing an appointor and other changes to trusts via a trust deed amendment, we are unfortunately unable to remove beneficiaries of an existing trust due to the risk of resettling the trust.

When a "resettlement" occurs, the old trust is considered to come to an end and a new one begins. This generally happens where the trustee undertakes to do something (a new "trust") not considered when the trust was first established by the original settlor - therefore, the trust has been "resettled". 

Effectively, the old trust disposes of all of its assets to the new trust, giving rise to CGT and stamp duty issues.

We would recommend seeking independent legal advice in this situation.