Thus, the appointor is the one who ultimately has practical control over the trust and careful consideration is needed before deciding who becomes the appointor. In a typical family trust deed, the appointor may only be mentioned by what seems to be an afterthought, but the role is of great importance. The capacity to remove a trustee, replace a trustee, reject a trustee’s appointment can be paralleled to the ultimate power of a company’s shareholders. Implications of ownership therefore flow for income tax and Centrelink purposes. An appointor should ensure the role is passed on to the most appropriate person via their will.
25th-February-2009 | 