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Edited version of private advice
Authorisation Number: 1051707233397
Date of advice: 29 June 2020
Ruling
Subject: Trust resettlement
Question
Will the proposed amendments to the Trust Deed cause CGT event E1 or E2 to happen?
Answer
No.
The proposed amendments to the Trust Deed will not cause the Trust to terminate or give rise to a particular asset of the Trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the Trustee to amend as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away on XX/XX/XXXX.
The deceased's will provided for the establishment of a testamentary trust for the benefit of the Primary Beneficiary (Trust).
The Trust deed contains a wide power of amendment.
The trustees will now exercise the power of amendment to enable the replacement of trustees and widen the class of Trust beneficiaries.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-55
Income Tax Assessment Act 1997 Section 104-60