It depends – What happens if I name or revoke beneficiaries of my family trust?

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In this edition of ‘It Depends’, partner Sacha Robinson talks about appointing or removing beneficiaries from your family trust.

VIDEO TRANSCRIPTION

Hi. Welcome to today’s edition of It Depends. Today we’ll talk about appointing or removing beneficiaries from your family trust.

What happens if I appoint or revoke beneficiaries of my family trust.

It depends.

Should I name or revoke beneficiaries of my trust?

First, you need to ask yourself why you want to name or revoke beneficiaries from your trust and if this is even necessary. There are many reasons why you may want to name or revoke certain beneficiaries of your trust, for example, it may be a requirement of a bank or financial institution. Or it may be a condition of a family law settlement. There are also more general reasons why you may wish to restrict the categories of beneficiaries of your trust. For example, for reasons of social charges or to exclude foreign persons for the purposes of property tax and surcharge.

What are the consequences of designating or revoking beneficiaries?

You should be careful when appointing or revoking beneficiaries of your family trust as there may be tax or tax consequences.

Can I name or revoke beneficiaries of my trust?

It depends. The first step is to read the deed and follow the process set out in the deed. For example, there may be a power in the trust deed for the trustee or appointment or to revoke or appoint beneficiaries. Beneficiaries may also be able to waive their interest as a beneficiary.

What should I do next?

It is important that you remove or correctly name the beneficiaries of your family trust to avoid any unintended consequences. Please contact me or a member of our team to discuss further.

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