Children, parents and other not so distant relations of this (principal) beneficiary (aka a primary beneficiary) and related companies and related trusts of this (principal) beneficiary will be included as beneficiaries (aka general beneficiaries).

The children of the primary beneficiaries will be takers in default of appointment of the trust capital on the vesting of the trust.

Children, parents and other not so distant relations of this (principal) beneficiary (aka a primary beneficiary) and related companies and related trusts of this (principal) beneficiary will be included as beneficiaries (aka general beneficiaries).

The children of the primary beneficiaries will be takers in default of appointment of the trust capital on the vesting of the trust.

Family trusts that acquire and hold residential land in various Australian jurisdictions are now subjected to high land tax and stamp duty surcharges as foreign trusts unless the trust deed of the trust excludes foreign persons, broadly persons who are neither resident of Australia nor citizens of Australia, from ever being a beneficiary of the trust.

For more information see our blog post Australia is now tracking & surcharging foreign buyers of land

Notes

To establish a family discretionary trust a settlor must make a gift of the settled sum to the trustee.

Payment of the settled sum to the trustee is important as the gift by the settlor of the settled sum is the event that creates the family discretionary trust.

The trustee continuing to keep and secure the settled sum is how trust property is maintained so the trust does not vest even if the trust goes into negative equity. A government authority or, especially, a lender can ask the principals to show and verify that the trust was established by the gift of the settled sum and that the settled sum is retained.