Can InterDocs prepare documents to exclude foreign beneficiaries of an existing trust (in relation to the land tax surcharge for foreign purchases of property)?
Yes, if the existing trust was set up with InterDocs we can prepare documents for the Trustee to make a determination to exclude foreign beneficiaries from the class of General Beneficiaries.
These documents are to address new laws in various States which impose a stamp duty surcharge and, in some cases a land tax surcharge, on certain foreign purchasers of residential land in that State. These laws may extend to discretionary trusts. Specifically if any of the beneficiaries under the trust are ‘foreign’ (as defined by the relevant State Act), the trust could be deemed to be a ‘foreign trust’ (and, therefore, possibly subject to stamp duty and/or land tax surcharges).
We do this on the basis that your Trust has a standard InterDocs Trust Deed. In particular, clause 10.1 of our standard deed allows the Trustee, with the consent of the Appointor, to exclude a person from the class of General Beneficiaries under the Trust, and the documents rely on the exercise of these powers (note that it is not possible to exclude a Primary Beneficiary from being a beneficiary under this power, so if a Primary Beneficiary of the trust is a ‘foreigner’, the trust may still be considered a ‘foreign trust’).
If your trust deed is not a standard InterDocs Trust Deed, this kit will not be suitable for your Trust and we recommend you seek independent legal advice for the preparation of resolutions specific to your trust deed.
The cost of the kit is $275 and if you would like us to prepare the documents, please email a copy of your executed trust deed to firstname.lastname@example.org