Splitting and merging trusts

Dr John Glover - Associate Professor, Monash Law School

Paul Sokolowski - Partner, Arnold Bloch Leibler

Professional development lecture

Trust splits and mergers are tax-planning devices. Splitting an existing trust into one or more new trusts, or merging existing trusts into one trust can attract CGT liability at both trustee and beneficiary level. Liability is subject to the “cloning” exception to CGT events E1 and E2 and the “mere change of trustee” exception to event A1.

This lecture discusses the uses of trust splits and mergers, how trusts law and capital gains provisions interact, and the width of the trust cloning exception in the light of Tax Ruling TR 2006/4 released on 7 June 2006.

Speaker Profiles

John Glover is a Barrister at the Victorian Bar and an Associate Professor in the Law Faculty at Monash University. John is author of Equity, Restitution & Fraud (2004) and Commercial Equity: Fiduciary Relationships (1995) and numerous articles and book chapters on taxation, trusts and equity law. He has appeared as barrister assisting leading tax and equity counsel both in Melbourne and Sydney.

Paul Sokolowski has been a partner of Arnold Bloch Leibler, Lawyers & Advisers since 2001. Paul is a member of the firm’s taxation practice and advises a range of clients including high-worth individuals, some of Australia’s largest family groups and public corporations. Prior to joining Arnold Bloch Leibler, Paul spent many years at the ATO, including as a senior officer in the Large Business and International Division.