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Family Trust ‘Foreign Persons’ Variation

Why do you need this variation to your family trust?

Foreign surcharges, such as surcharge land tax or surcharge purchaser duty, can apply whenever ‘foreign persons’ own or acquire property in New South Wales. In the case of a discretionary or family trust, if your specified or general beneficiaries are foreign persons or they could include foreign persons then property owned by the trust may attract surcharge land tax.

If foreign persons are not intended beneficiaries, then the trust deed should be varied to expressly exclude foreign persons from being a beneficiary or receiving any benefit, such as income or capital, from the trust.

See “Family Trust Surcharge Land Tax Variation Self Assessment“.

Deed of Variation to exclude Foreign Persons