The Deed of Variation of Discretionary Trust (excluding foreign persons) is a document that allows you to vary your existing discretionary trust deed to exclude ‘foreign persons’ from being beneficiaries. 

In certain jurisdictions, having a specific clause to exclude foreign beneficiaries may help avoid the associated state-based duty and taxes that may apply. For example, if a foreign person is a beneficiary to the trustee’s residential property in NSW, they may be liable for ‘surcharge purchaser duty’ and ‘surcharge land tax’. You must seek legal advice from a qualified professional before using this Deed to determine if it meets your specific circumstances. 

Important 

It’s important to remember that this document will not prevent an existing named ‘foreign’ beneficiary from benefiting from the trust. The deed serves to excIude any other ‘foreign’ person who has not been previously named as a beneficiary. You must contact the relevant revenue office in your state/territory to check its suitability and for further details regarding the surcharge rate that applies to a ‘foreign trust’.

Use this Deed of Variation if:

• If you would like to update your trust deed to exclude foreign persons (other than a named beneficiary)

• Foreign persons could be classified as beneficiaries in your discretionary trust

What does this Deed of Variation Cover?

• Background

• Variation of trust deed

• Consent of appointor

• Effective date of deed

Further Information:

• Key Parties to a Discretionary Trust

• How Can I Change the Beneficiaries of a Discretionary Trust?