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Estates & Trusts Newsletter: May 2015

Newsletter Article 12 May 2015

In this issue:

"Trusts under the Perpetuities Act 1984 (NSW), potentially can last up to 80 years.  Many old trust deeds established before the introduction of CGT in 1985 did not have to consider the vesting date as important and often made the trust a 30/40/50 year project. This earlier than available wind up date will potentially crystallise an enormous tax and stamp duty bill when the trust ends much earlier than it needs to. Extending the vesting date by amending the trust deed, if available, or by Court approval if not, can defer the imposts for many years. Making sure that your trust deed gives you every available tax benefit is as simple as having the deed properly reviewed and action taken to deal with the problem. This article deals with this common problem and the approach of the Courts to the approval process. Rectification of the Deed is also possible where typographical errors have been made such as typing 2022 rather than 2082 in a deed that was established in 2002. Finding these problems and fixing them in a timely fashion can save money and trauma.”

Michael Henley, Partner and Team Leader

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Newsletter Article 12 May 2015
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