The ATO has reminded practitioners that there are many reasons why it may be necessary to review and amend a trust deed, such as legislative changes.
They recommend, before amending a trust deed, to check if there is a power of amendment within the deed. If there is a power of amendment, the following should then be determined:
- Who can exercise that power and are they authorized under the deed to do so:
- If the power permits that proposed change (For Example, are there specific restrictions on the power)
- What consent (if any) is required to exercise the power (For example, settlor, appointor, beneficiary)