Variation of Discretionary Trust

This Variation of Discretionary Trust Deed is a document that you can use to change the terms of an existing discretionary trust. The document is to be executed as a deed by the trustee and appointer, as provided for in the original trust deed for the discretionary trust. You MUST seek advice from a qualified professional before using this deed to check that it meets your specific circumstances.

Note: this document assumes that the current trustee is the trustee appointed by the original trust deed.

Can you change/remove the beneficiaries of a discretionary trust?

Yes, as the trustee of a discretionary trust in Australia, you can change or remove beneficiaries at any time, as long as the trust deed allows for it. This is one of the key features of a discretionary trust, as it provides flexibility in managing the trust’s assets and distributing income.

However, it’s important to note that any changes made to the trust deed must be done in accordance with the trust’s deed and legal requirements. Seeking legal advice from a qualified professional is strongly recommended before making any changes to the beneficiaries of a discretionary trust.

Who is the primary beneficiary of a discretionary trust?

The primary beneficiary of a discretionary trust is any person or entity who is named in the trust deed. There can be multiple primary beneficiaries. The trust may also list “general” or “secondary” beneficiaries, who are people not named but referenced by their relationship to primary beneficiaries, such as children or spouses. The trustee has discretion over how to distribute income or capital between these beneficiaries, depending on the instructions within the trust deed and those beneficiaries’ individual circumstances.

Use this Variation of Discretionary Trust if:

• A discretionary trust has previously been established;
• The trustee is permitted to amend the trust deed; and
• The changes to the trust deed are to be formalised, as set out in a deed of variation.

What does the Variation of Discretionary Trust cover?

• The changes to the trust deed; and
• Relevant consents and other consequential terms.

Other names for Variation of Discretionary Trust include:

• Deed of Variation of Discretionary Trust; and
• Change of Discretionary Trust. 

Further information

• Advantages and Disadvantages of a Discretionary Trust
• Discretionary Trusts vs Unit Trusts
• Discretionary Family Trusts