My client's trust is going to purchase residential property in Victoria and I have already purchased a kit (trustee's determination) to exclude foreign beneficiaries from my client's trust deed (based on VIC). Should the resolution still be effective, or do I need to now vary the deed?
Our deeds (both regular and foreign exclusion) allow the trustee to exclude potential beneficiaries by resolution, and this should be effective, as it’s a legitimate power provided under the trust deed. However, due to the explicit language used by the SRO in its announcement (which refers to trust deed amendments), going forward, we recommend amending the deed rather than rely on resolution.
That said, if your client has used a resolution, this should still work (but employees of the SRO may not accept it, as they are unlikely to be trust law experts, and therefore the clients should be aware that they may encounter some push-back, and administrative hassle, or maybe even litigation to prove their point).
Read here for more information.
If you have purchased a kit and decide to now vary the deed based on Victorian legislation, please contact us.