Trust Resettlements Any time a trust deed is changed there is the risk that the change could result in a ‘resettlement’. If a resettlement happens then it is considered a change so great that the nature of the trust is changed so it is a new trust. The would mean a notional transfer of all the assets of the trust has occurred. When a transfer happens it is a Capital Gains Tax event and also a stamp duty event. The income tax side is relatively straight forward. As long as the trust deed foresees the possibility of the change happening then generally it won’t be a resettlement for CGT reasons. But the stamp duty side is much more complex as each state has different stamp duty laws. In NSW for example a change of trustee can be a resettlement if the deed is worded so that the new trustee becomes a beneficiary where they were not a beneficiary before. Don’t go changing trust deeds without legal advice.