Has anybody ever changed trustee for their trust?
And if you did, did it have any implication in terms of stamp duty or CGT?
“A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763
The rules about changing the trustee will be outlined in the trust deed.
I can’t see why there would be a stamp duty/CGT issue as the assets are not be disposed of.
Remember that success comes from doing things differently.
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Success comes from doing things differently
Thank you Steve.
I think so too and hope for the best.
“A good accountant is the one that on question how much is 2×2 answers how much do you want it to be?”
Steve, if this is classed as a resettlment of the deed of trust, then this may trigger the payment of stamp duty as the beneficial owner of the property has changed and it you could be up for capital gains tax. Is this not the case?
And I am not sure what would happen to the loans (if any) held by the trust. Would they have to be discharged and retaken out in the new trustee’s name?
You are right about re-doing the loan in the name of the new trustee.
However, in regards to the first sentence, I think it might only happen when beneficiaries change not trustees ?
“no pain, no gain!”
I hope you are right, but…
Usually the beneficiaries are listed vaguely such as any spouse of X (Tustee), and children, relative etc. So if the trustee changes, then the beneficiaries will also change.
[email protected]LakshmiPropertyInvestorsMember@lakshmipropertyinvestorsJoin Date: 2002Post Count: 30
I’ve changed Trustee of my TRust.
It’s no big deal.
It’s as simple as one driver getting out of a bus and a new driver getting in.
There was no stamp duty or CGT.
The only minor hitch was that the bank wanted to see the Trust Deed before it would allow a new account, to ensure that it allowed for a change of Trustee.
The Trustee is only the manager of the Trust, which owns the assets.
The beneficiaries do not own the assets, the Trust does, so changing the Trustee does not alter the ownership of the assets. Nor does changing the Trustee change who the beneficiaries are, they remain the same.
Go ahead and do it, but make sure there’s something in the fine print that says you can, and also have your current Trustee write a minute authorising the change.
Thank you Andrew!
That makes sense.
“no pain, no gain!”
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