From www.khq.com.au: The case Re EM McPherson Settlement [2024] VSC 744 highlights the need for updating old trust deeds that lack modern flexibility and amendments, as demonstrated by the trustee’s requests for court-approved changes to address taxation issues and broaden beneficiary definitions.

The Court approved several amendments, including extending the vesting date, broadening beneficiaries, and modernising tax-related provisions, but rejected the insertion of a general amendment power, necessitating future changes to seek court approval.

This case serves as a reminder for trustees and advisors to ensure that trust deeds contain necessary powers to adapt to legal and tax changes, especially in light of evolving needs and circumstances.