Appointed a new trustee of your Trust? Does the Trust own dutiable property? Stamp it!

Where a new trustee is appointed as trustee of an existing Trust, the transfer of any dutiable property to the new trustee, such as a transfer of land lodged with the Land Titles Office, needs to be stamped before it can be registered.

However, a Deed of Appointment which vests dutiable property in the new trustee also needs to be stamped and we are increasingly seeing that this is not occurring, in circumstances where it should be.

What is a new trustee?

A trustee appointed in replacement of, or in addition to, an existing trustee.

What is dutiable property?

Dutiable property includes land, land use entitlements and options to purchase dutiable property. It also includes goods in certain circumstances.

Is duty payable on appointment of a new trustee?

Yes – if the Trust holds dutiable property and the dutiable property of the Trust vests in the new trustee.
No – if the Trust did not hold any dutiable property at the date the Deed of Appointment was signed or the Deed of Appointment was drafted in a manner that results in the dutiable property not being vested in a new trustee.

If your answer to the above is “Yes”, what do you need to do?

You will need to stamp the Deed of Appointment, which vests the dutiable property in the new trustee.

You will also need to ensure that any subsequent transfer of dutiable property, such as a Land Titles Office transfer instrument which transfers real property to the new trustee, is stamped for duty.

If you are having the Deed of Appointment prepared by an advisor, such as your accountant, make them aware of the stamping requirements or otherwise attend to this yourself.

How we can help

If you are considering appointing a new trustee, contact our office to ensure that the Deed of Appointment and stamping requirements are completed properly.

We can:

• prepare the Deed of Appointment.
• review your existing Trust Deed and Trust to advise whether the Deed of Appointment needs to be stamped.
• assist with the stamping of the Deed (if required).
• arrange the transfer (and stamping) of any dutiable property to the new trustee.
• provide advice on the application of any duty exemptions or concessions.