Care needs to be taken when varying Trust Deeds
A recent case [MERCANTI -v- MERCANTI [2015] WASC 297],
where one trust deed amendment was effective but another was found by the court
not to be a valid amendment, demonstrates that good advice and drafting is needed
to ensure valid and effective amendments to trust deeds.
In this case the
person empowered by each of two different trust deeds to amend the trust deed
purported to exercise those powers to change the person named as the
‘appointor’ in each of the trust deeds. The person removed from the ‘appointor’
position challenged his removal and the court found that the wording of the
relevant clauses was critical. In one case the court found that the
power was sufficiently wide to authorise the change but not in the other. If
your Trust deeds need amending, (and many do) then please call me to discuss.
