To change the trustee of a trust, the person who holds the power under your trust deed (usually the appointor) signs a deed that removes or retires the old trustee and appoints the new one. The new trustee consents to act, and then every trust asset gets retitled into the new trustee’s name. For most family trusts, you don’t need to vary the trust deed at all.
Here’s the catch. Most people only think about the trustee when something forces them to: a death, a divorce, a falling out, or a bank asking awkward questions. By then, the paperwork is urgent and the deed is in a shoebox somewhere. You just need to do it in the right order.
- Your trust deed decides who can change the trustee. In most family trusts that’s the appointor, not the settlor, the beneficiaries or the trustee.
- A change of trustee deed does the job. You rarely need a deed of variation, and using one when you don’t need it can create tax headaches.
- Signing the deed is only half the work. Land titles, bank accounts, shares, contracts and the ATO all need to show the new trustee.
- Stamp duty is usually small, if the paperwork is right. Each state offers concessional duty for a straight trustee change, but miss a required statement and full duty can apply.
- If your trustee is already a company, you might only need new directors. Swapping directors changes who controls the trust without touching the trustee at all.
Who can change the trustee of a trust?
Whoever your trust deed says can. In a discretionary (family) trust, that’s almost always the appointor, sometimes called the principal or guardian. The appointor holds the power to hire and fire the trustee. That makes the appointor the real boss of the trust.
Most people assume the settlor has a say. They don’t. The settlor’s job ends the day the trust is set up, and many deeds bar the settlor from benefiting at all. Beneficiaries don’t get a vote either, unless your deed says otherwise.
Read the deed’s trustee clause before you draft anything. Look for three things: who holds the power, what form the appointment must take (a deed, a written notice, a resolution), and any rules about who can be trustee. Some deeds bar foreign residents or people living overseas. Others cap the number of trustees.
What if there are two appointors?
If your deed says joint appointors act together, both must sign. One appointor can’t swap the trustee alone. That’s great protection while everyone gets along and a real problem when they don’t, so check whether your deed has a deadlock clause before you need it.
What if the trustee has died?
The appointor appoints a replacement under the deed. If the deed is silent, or the appointor has also died, each state’s trustee legislation fills the gap. Broadly, it lets the surviving trustee or the deceased trustee’s executor appoint someone new. Act fast here. A trust with no trustee can’t sign contracts, operate its bank account or sell anything.
Do you need a deed of variation to change the trustee of a trust?
Usually not. This is the most common mix-up we see, and older guides (including an earlier version of this one) got it wrong.
A well-drafted deed already contains the power to replace the trustee. You use that power with a deed of appointment and retirement, or a deed of removal and appointment. The trust deed itself stays exactly as it is. Only the name of the person holding the assets changes.
A variation of discretionary trust rewrites the rules themselves. You’d only reach for one if your deed has no power to change the trustee, or if a rule blocks the trustee you want (say, a ban on companies acting as trustee). Varying the deed when you don’t need to invites a bigger question. Has the trust changed so much that it’s now a new trust? That’s called a resettlement, and it can trigger capital gains tax and stamp duty on everything the trust owns.
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How to change the trustee of a family trust, step by step
The order below holds. Skip a step and the change might not be valid, even if everyone agreed to it over a barbecue.
- Find the signed deed and every variation. A draft or an unsigned copy won’t do. If the original is lost, talk to a lawyer before going further, because you can’t prove what powers exist without it.
- Confirm who holds the power and how it must be used. Check the appointor, any successor appointor, and the required form of appointment.
- Check the new trustee is eligible. For a company, confirm it’s registered, every director has a director ID, and its constitution lets it act as a trustee.
- Prepare the change of trustee deed. It should name the trust, the outgoing trustee, the incoming trustee and the appointor, cite the clause being used, and state the effective date. A change of trustee deed built for discretionary trusts covers all of this.
- Get the new trustee’s written consent. Some deeds build this in. If yours doesn’t, use a separate consent to act as trustee.
- Sign it properly, as a deed. Follow the witnessing rules for your state. Companies sign under section 127 of the Corporations Act 2001 (Cth), usually by two directors, or a director and secretary.
- Stamp the deed and lodge any property transfers. Your state revenue office decides the duty, and land titles needs transfer forms to put property in the new trustee’s name.
- Update everyone else. Banks, share registries, the ATO, lenders, insurers, landlords, suppliers and your accountant. The table further down lists the usual suspects.
Steps 1 to 6 can happen in a day if the deed is clear. Steps 7 and 8 take longer, sometimes a few months when property and lenders are involved. Start them straight away.
Should you change to a corporate trustee or an individual trustee?
If you’re changing trustees anyway, it’s the perfect moment to ask this. For most business-owning family trusts, a corporate trustee is the better long-term choice. Here’s why, and what it costs you.
| Question | Individual trustee | Corporate trustee |
|---|---|---|
| Setup cost | Nil | Company registration plus ASIC annual review fee |
| What happens if a person leaves or dies? | Change of trustee deed, then retitle every asset | Change the directors; assets stay put |
| Personal assets mixed with trust assets? | Yes, all in one name | No, trust assets sit in the company’s name |
| Exposure to trust debts | Personal, and unlimited | Company’s, though directors can be personally liable in some cases |
| Ongoing admin | Lower | ASIC records, director IDs, annual review |
The big win is continuity. Once a company is trustee, future changes in control happen at the director and shareholder level. You lodge the director change with ASIC within 28 days, and the trust’s land titles, shares and bank accounts never have to move again.
Don’t treat the company as a bulletproof shield, though. Under section 197 of the Corporations Act 2001 (Cth), directors can be personally liable for debts the trustee company incurs if the company can’t be repaid from trust assets. Asset protection improves. It doesn’t become absolute.
Want the full comparison before you decide? Our guide on how a corporate trustee works goes deeper. If you’re ready, you can register a company to act as trustee online.
Already have a corporate trustee? You may not need to change it
Plenty of people asking how to change trustees on a trust actually want to change who runs the trustee company. That’s a director change, not a trustee change. No new deed, no retitling, no stamp duty. You only replace the company itself if you want a different company as trustee, and then the full step-by-step process above applies.
Removing a trustee from a trust when they won’t go quietly
Retirement is the easy version: the outgoing trustee agrees and signs. Removal is the harder one. If the appointor has a power to remove, they can use it without the trustee’s consent, as long as they follow the deed’s procedure exactly. Give the notice in the required form, keep proof it was delivered, and sign the appointment of the replacement at the same time so the trust is never left without a trustee.
Expect friction anyway. A removed trustee still holds legal title until assets are transferred, and some will drag their feet on signing transfer forms. If there’s no removal power, or the trustee refuses to hand over, the fallback is a court application under your state’s trustee legislation. That’s slow and expensive, so check your deed’s removal power now, while things are calm. Our guide on how to remove a trustee covers the court route in more detail.
What happens to trust assets, stamp duty and tax when you change the trustee?
Legally, the trust continues and nothing has been sold. In practice, every asset in the old trustee’s name has to be moved into the new trustee’s name, and that’s where the cost and delay live.
Property and stamp duty
Every state and territory gives concessional (nominal) duty when trust property moves from an old trustee to a new one, as long as no beneficial interest changes. In New South Wales, for example, section 54 of the Duties Act 1997 (NSW) sets a small fixed duty for these transfers. Your revenue office needs to see evidence that the change is a genuine trustee swap and nothing more.
Where this goes wrong is the paperwork. Leave out a statement the revenue office requires, or bundle the trustee change with a beneficiary change, and you can face full ad valorem duty on the property’s value. On a commercial property, that’s a five-figure mistake from a missing paragraph. Get the deed checked before it’s stamped, not after.
Also check your mortgage. Most loan agreements need the lender’s consent before the borrower (the old trustee) changes, and some treat an unapproved change as a default.
The ATO, ABN and bank accounts
The trust keeps its TFN and ABN. What changes is the trustee’s details on the Australian Business Register, which you update within 28 days. Banks treat a new trustee as a new customer: expect fresh ID checks for every director or individual trustee, plus a certified copy of the change of trustee deed.
| What to update | Who handles it | Watch out for |
|---|---|---|
| Land titles | State land registry, via a conveyancer | Transfer forms and stamped deed needed |
| Stamp duty | State revenue office | Required statements in the deed |
| Mortgages and loans | Your lender | Consent before the change, not after |
| Bank accounts | Your bank | New ID checks for every signatory |
| Shares and investments | Share registries, brokers | Off-market transfer forms |
| ABN and trustee details | Australian Business Register | Update within 28 days |
| Contracts, leases, insurance | Each counterparty | Leases often need landlord consent |
| Business names, licences, employment records | ASIC and the relevant regulator | The trustee is the legal employer and licence holder |
Resettlement and capital gains tax
Done under the deed’s existing power, a change of trustee doesn’t create a new trust. The ATO’s published position on trust resettlements accepts that the trust continues where changes are made under powers already in the deed. That’s the main reason to use an appointment deed rather than a variation. Bundling a trustee change with new beneficiaries, a new vesting date or changed distribution rules is where the resettlement risk climbs, so ask your accountant to look at the whole package together.
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What we see in Lawpath consultations about changing trustees
Our lawyers talk to business owners about trust restructures every week. A few patterns come up again and again.
Self-drafted deeds that “vary” the trust to name a new trustee. In practice, we see owners draft a document that amends the trust deed so the new trustee’s name appears in it. Our lawyers routinely redraft these as a plain appointment: “the appointor appoints [new trustee] as trustee of the trust from [date]”. It’s cleaner, it follows the deed’s own power, and it keeps resettlement off the table.
The trustee company that quietly got deregistered. A corporate trustee misses its ASIC annual review, gets struck off, and nobody notices for months. When a company is deregistered, its property, including property it holds on trust, vests in ASIC under section 601AD of the Corporations Act 2001 (Cth). Anything the “trust” signed during that gap may be invalid. Fixing it means either reinstating the old company or appointing a new trustee and then getting the assets back from ASIC. Neither is quick. Pay the annual review fee.
Changing the trustee when the real goal is control. Most founders assume the trustee runs the show. When they dig into the deed, they find the appointor does. If you’re planning for death or incapacity, the bigger fix is often naming a successor appointor (some deeds let you do this in your will), leaving the trustee company’s shares to the right person, and updating your enduring power of attorney so someone can act if you can’t.
Tax-driven restructures that skip the tax advice. A common trigger is land tax, especially in Victoria, where owners want to shift property between trustees or entities. Our lawyers handle the documents, but the land tax, CGT and duty modelling needs an accountant first. Restructure in the wrong order and the saving can disappear.
Forgetting the lender. Owners sign the deed, then discover their mortgage needed the bank’s consent to a new borrower. Ask the lender before you sign, not after.
Change trustee of a trust: frequently asked questions
How long does it take to change the trustee of a trust?
Signing the change of trustee deed can happen in a day if your deed is clear and everyone is available. Retitling property, stamping, and updating banks and lenders takes longer, often several weeks and sometimes a few months. Start the asset transfers straight after signing.
Can a beneficiary be the trustee of a family trust?
Yes, and in family trusts it’s normal. The exception is a sole trustee who is also the sole beneficiary. With no separation between legal and beneficial ownership, the trust can collapse. Check your deed too, as some exclude trustees from benefiting.
Does changing the trustee trigger capital gains tax?
Not if you change the trustee under the power already in your deed. The trust continues, so there’s no disposal. CGT risk appears when the change is bundled with bigger changes that could resettle the trust, such as new beneficiaries or rewritten distribution rules.
Do I pay stamp duty when I change trustees?
Usually only a small concessional amount on property transfers, provided no beneficial interest changes. Each state sets its own rules and evidence requirements. Get the deed wrong and full duty on the property’s value can apply.
If a house is in a trust, can it be sold?
Yes, by the trustee, if the deed allows it, and most do. The trustee signs the contract as trustee for the trust. If you’ve just changed trustees, the title must show the new trustee before settlement, or the sale will stall.
Can a trustee resign?
Yes. Most deeds let a trustee retire by notice to the appointor. The retirement should take effect at the same moment a replacement is appointed, so the trust is never left without a trustee holding its assets.
Do I need to tell the ATO about a new trustee?
Yes. The trust keeps its TFN and ABN, but you must update the trustee’s details on the Australian Business Register within 28 days. Your accountant can do this as part of their next lodgement work.
What document do I need to change a trustee?
A change of trustee deed, sometimes called a deed of appointment and retirement. It’s signed by the appointor, the outgoing trustee and the incoming trustee. You’ll also need the new trustee’s consent to act if the deed doesn’t include one.
Ready to change your trustee?
If your trust deed has been gathering dust, you’re in good company. Most trustees only open it when something changes, and that’s fine. You now know the order: check the deed, use the right power, sign properly, then move the assets. That’s the whole job.
Lawpath has helped more than 650,000 Australian businesses get their structures sorted, with 550+ legal templates and lawyers on hand if your deed throws up a curveball. Start your Change of Trustee Deed today.
