All Topics / Legal & Accounting / What happens if….

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  • Profile photo of tom1000000tom1000000
    Participant
    @tom1000000
    Join Date: 2003
    Post Count: 74

    Hi,

    This wouldn’t apply to me, except maybe a future wife…

    Say a woman sets up a trust with herself as a benificiary. The trust deed would specifically say Ms Jane Smith.

    What happens when she gets married and changes her name? Technically the trust deed doesn’t list her any more…. can it be changed?

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi tom1000000
    women are very funning things and as far as I’m of the understanding and it hasn’t changed they can purchase in either or name as my wife does and they can keep an investment either or name because you have married does not relinguish the use of your maiden name so again the trust could be still active in her name alone and if later divorced the other half would have a hard time getting access to any of its property or income.
    maybe linar can shead some light but I think i’m right.

    here to help

    Profile photo of catacata
    Participant
    @cata
    Join Date: 2005
    Post Count: 559

    If the deed allowes you to change benificiaries then it should be a minutes entry. If the deed does not allow you to change you can not.I think GR has it right for a maiden name though.

    CATA
    Asset Protection Specialist
    [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I think legally they would still be the same person so there shouldn’t be any problem.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of GPSnetworkGPSnetwork
    Member
    @gpsnetwork
    Join Date: 2005
    Post Count: 313

    True, I agree with Terryw on that one, there is always a track record of all previous names..

    Roy H.
    L.R.E.A., Dip FS (FP)

    Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!

    http://www.gpsnetwork.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Cata would have more experience than me but every Trust I have been involved in has provisions for changes in the Deed by way of a minute.

    What happens when you have more kids.

    Cheers Richard

    Ph: (07) 3720 1888
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Australia's leading private lender

    Profile photo of 30Ch30Ch
    Participant
    @30ch
    Join Date: 2005
    Post Count: 7

    She is the same person whether she has a new name or not. Anyone thinking they can easily “change beneficiaries” or “add beneficiaries” by simply having a Minute done or changing the trust deed must have a morbid desire to add to the coffers of the revenue authorities. If you add a new beneficairy to a trust you are likely to fall into the trap of what they call a resettlement which can bring about all sorts of stamp duty and cgt horrors. That is why when trust deed are properly set up they describe a wide group of people, such as ‘the children of…”, so that any new children automatically come within the list of beneficiaries without having to change the list of beneficiaries

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    The wording of the trust in regards to children needs to be very specific. The ‘children of Mr and Mrs A’ does not necessarily mean the children of Mr A before he married. This exact phrase was challenged by the ATO when they tried to grab the assests of a Mr A by saying that Mr A has no children with Mrs A.

    A trust also set up in Mrs A’s maiden name was also target by the ATO as belonging to Mr A’s assests. The difference from this situation and the question asked is that Mr and Mrs A were in an established defacto relationship when the trust was set up and not married.

    C2

    Rich in happiness and money is better than rich in money with no happiness.

    Profile photo of catacata
    Participant
    @cata
    Join Date: 2005
    Post Count: 559
    Originally posted by 30Ch:

    Anyone thinking they can easily “change beneficiaries” or “add beneficiaries” by simply having a Minute done or changing the trust deed must have a morbid desire to add to the coffers of the revenue authorities. If you add a new beneficairy to a trust you are likely to fall into the trap of what they call a resettlement which can bring about all sorts of stamp duty and cgt horrors. That is why when trust deed are properly set up they describe a wide group of people, such as ‘the children of…”, so that any new children automatically come within the list of beneficiaries without having to change the list of beneficiaries

    If the trust deed has provisions for a change like this then it can be as easy as a minutes entry, and that is EXACTLY why it is better to spend a bit more on a trust that has flexibility.

    Times change and structures need to be able to change with them.

    CATA
    Asset Protection Specialist
    [email protected]

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