Forums / Getting Technical / Legal & Accounting / Changing the main activity of a Trust

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  • Profile photo of fabifabi
    Participant
    @fabita90
    Join Date: 2016
    Post Count: 1

    Hi All,

    I have an existing discretionary trust that I never used. This trust was created in 2014 to buy and hold an investment property.

    1. Can I use this trust now but the main source of income will be to provide consultancy services to external fee paying clients as opposed to investment?
    2. Is this change will trigger any re settlement of the trust?
    3. Do I need to change the trust deed or let the ATO know any change?

    Thanks in advance,

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    1. If the trustee has this power. Read the deed and the relevant trustee act
    2. Probably not
    3. Depends on the above. Tell ATO on the next trust tax return.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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