Can I change a Beneficiary of my trust?

In a discretionary trust (or family trust) the beneficiaries do not have fixed entitlements or interest in the trust. The Trustee decides on any amount (if any) to distribute to any of the beneficiaries. 

In most circumstances, you may not need to change the beneficiary list. As the name suggests, a discretionary trust allows the Trustee discretion to whom can receive benefit inclusive of the definition of the beneficial class (eg. brothers, sister, spouses & other family members). 

Certain commercial circumstances commonly arrise which result in the need for the Trustee to remove or add beneficiaries. This is very common when banks request beneficiaries to be removed when beneficiaries cannot be identified or are not aparty to that transaction. You must carefully consider the tax implications of adding or removing a beneficiary prior to executing a change for this reason. If the deed allows for it, you may be able to prepare a Deed of Exclusion to exclude that individual or entity as oposed to removing the beneficiary. 

Before any Deed of Amendment is executed, you must seek indepedent legal advice.

Other questions in Discretionary Trust