As previously discussed in February this year, discretionary trusts that own residential property in NSW or hold an interest in a company or unit trust that owns residential property in NSW, must amend their trust deeds to explicitly exclude foreign persons as beneficiaries, otherwise foreign land tax and duty surcharges would apply. The deadline to make these amendments has been extended from 21 December 2019 to 31 December 2020. NSW will automatically deem discretionary trusts to be foreign persons unless the trust deed is amended before midnight on 31 December 2020 to:
- Exclude all foreign persons as eligible beneficiaries
- Prevent any amendment to the exclusion of foreign persons as beneficiaries, so that the exclusion is permanent.
If you require your trust deed to be review and/or updated, please contact us.