Legal Insights
Broad Powers, Unintended Consequences: Trustee's Authority to Remove Appointor Upheld
Appropriately considering the successive control of discretionary trusts, at both a trustee and an appointor level, is a critical component in succession planning. The recent Queensland Court of Appeal decision of Staley v Hill Family Holdings Pty Ltd highlighted this, after broad variation powers resulted in the removal of an appointor by a trustee which could have been avoided had the succession of the trust been properly addressed.
The Courts supervisory powers: ensuring the proper administration and due execution of trusts
In the case of Dryandra Investments Pty Ltd v Hardie by her guardian ad litem Ian Torrington Blatchford [2024] WASC 24, the Supreme Court of Western Australia examined a key aspect of estate planning and structuring: ensuring proper succession for the roles of appointor and guardian. The decision underscores the risks that arise when these crucial roles are overlooked, and succession is not addressed by an appointor or guardian before they lose capacity or pass away.
Gainer The Sequel – Lost Discretionary Trust Deed Failed for Uncertainty
The New South Wales Supreme Court has reconvened for a second time, this time addressing the implications of a lost trust deed. This decision highlights the crucial responsibility of trustees to properly preserve trust deed documents, not only to maintain the trust’s validity but also to prevent adverse outcomes, such as taxation or duties.
Key Changes to the Franchising Code
There have been some important changes to the Competition and Consumer (Industry Codes-Franchising) Regulations 2024. These changes will come into effect on 1 April 2025 and have the potential to impact the way franchises operate. As a result, it’s important that both franchisees and franchisors are aware of their new obligations and rights.
Shifting views on Victorian Land Tax trust provisions
The recent VCAT decision of Caloutas as trustee for Caloutas Family Trust v Commissioner of State Revenue [2025] VCAT explored how bare or fixed trusts intersect with the Victoria land tax trust surcharge provisions.
ATO declares payment of a death benefit to a spouse’s estate not to be tax-free
In a Private Binding Ruling, the ATO determined that payment of a death benefit to a spouse’s estate is not tax-free under section 302-10(2) of the Income Tax Assessment Act 1997.
Changes to Holiday Home exemption for Vacant Residential Land Tax
On 4 June 2024, the State Taxation Amendment Act 2024 (Act) received Royal Assent. The Act, amongst other significant taxation changes, amends the holiday home exemption by introducing new provisions to section 88A of the Land Tax Act 2005 (LTA).
I’m an executor – I’ve heard of the executor’s year, but what does it mean for me?
The ‘executor’s year’ is the general principle that the personal representatives of an estate, be it the executors or administrators (in the case of an intestacy), have one year from the date of death of the person whose estate is being administered, to administer the estate.
What does separation or divorce mean for my estate planning?
The separation from a spouse (married or de-facto) is a critical time to review your Will, Enduring Power of Attorney and Appointment of Medical Treatment Decision Maker.