Deed · Trusts & Estate Planning
Discretionary (family) trust deed
Original starter deed for a discretionary family trust governed by NSW law, with an income definition, streaming power, foreign-person exclusion for NSW surcharge purposes, family trust election guard and a limited variation power.
- Kind
- Deed. A deed that must be executed as a deed.
- Where it applies
- Australia, New South Wales
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 9 authorities it cites, for Australia and New South Wales.
- Version
- 1
- Source
- Written for this library
When to use it
Use to settle a new discretionary trust for a family group where the firm does not already have an approved deed. Do not use for unit trusts, superannuation funds, special disability trusts or testamentary trusts, or where the client needs a fixed trust for land tax or duty purposes.
How AI may be used
AI may produce a first draft from the firm's approved deed and a completed instruction sheet, and check the drafting mechanics. The beneficiary class, income definition, vesting day and control provisions carry tax and duty consequences and are settled by the lawyer, with tax adviser input.
AI may
- Populate the schedule and defined terms from a signed instruction sheet, flagging any blank or inconsistent item
- Check internal cross-references, defined terms used but not defined, and clause numbering
- Produce a one-page table of settlor, trustee, appointor, successor appointor, primary beneficiaries and vesting day for the lawyer
AI must not
- Must not choose the beneficiary class, income definition, vesting day or appointor succession
- Must not add or remove the foreign-person exclusion or family trust election clauses without the lawyer's instruction
- Must not receive the family's financial or identity details in a tool whose terms allow training on inputs or offshore retention the firm has not approved
The lawyer checks
- Vesting day falls within the perpetuity period of the governing law (80 years in NSW)
- Foreign-person exclusion meets both the no foreign beneficiary and no amendment requirements of Duties Act 1997 (NSW) s 104JA and Land Tax Act 1956 (NSW) s 5D
- Settlor is excluded from all benefit and is not a member of the family group
- Execution, dating and any duty or registration steps are complete before the trust acquires assets
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Trusts & Estate Planning
- Trustee distribution resolution with section 100A risk notes
- Family trust election, revocation or variation (ATO approved form): completion guide
- Deed of variation of trust deed (with resettlement analysis worksheet)
- Testamentary discretionary trust clauses for a will
- Checklist: AI-assisted review of existing trust deeds and variations
All precedents for Trusts & Estate Planning · Tasks and AI use in this area