ARTICLE
15 May 2024

It Depends – What happens to the assets in my discretionary trust when I die?

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Cooper Grace Ward

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Established in 1980, Cooper Grace Ward is a leading independent law firm in Brisbane with over 20 partners and 200 team members. They offer a wide range of commercial legal services with a focus on corporate, commercial, property, litigation, insurance, tax, and family law. Their specialized team works across various industries, providing exceptional client service and fostering a strong team culture.
Transcript & link to video discussing what happens to assets in your discretionary trust when you die.
Australia Corporate/Commercial Law

In this edition of It depends, associate Sacha Robinson talks about what happens to the assets in your discretionary trust when you die.

Video transcript

Welcome to the latest edition of It Depends. Today I will be talking about what happens to the assets in your discretionary trust when you die.

What happens to the assets in my discretionary trust when I die?

It depends.

Can my Will deal with the assets in my discretionary trust?

Trust assets do not form part of your estate, so you cannot directly deal with them in your Will. Instead, you have to look to pass control of the trust and the trust assets.

How do I pass control of my discretionary trust?

It depends. This is really going to depend on the terms of your trust deed. There are a few issues we need to look at when determining how control of your trust passes on your death. Firstly, you will want to consider the succession of the appointor role, whether this is covered within the deed itself, in your Will or by a separate deed. You will need to read the deed and figure out how this passing of control works. Secondly, you will also need to have a look at the succession of the trustee role, particularly if there is no appointor of the trust.

What do I do next?

It is really important to check the terms of your trust deed and your Will as we find a lot of advisers and clients are not aware of how the appointor role passes in the trust deed and often it does not work as they expect it to. Please contact me or a member of our team if you would like us to review your trust documents.

© Cooper Grace Ward Lawyers

Cooper Grace Ward is a leading Australian law firm based in Brisbane.

This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.

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