{"id":17026,"date":"2026-10-20T03:07:46","date_gmt":"2026-10-19T16:07:46","guid":{"rendered":"https:\/\/chuatan.com.au\/family-trust-control-after-death\/"},"modified":"2026-10-20T10:58:57","modified_gmt":"2026-10-19T23:58:57","slug":"family-trust-control-after-death","status":"publish","type":"post","link":"https:\/\/chuatan.com.au\/en\/family-trust-control-after-death\/","title":{"rendered":"Control of Family Trusts After Death"},"content":{"rendered":"<div class=\"ct-article\" data-no-translation>\n<p>For many wealthy Australian families, the most valuable assets are not in the will at all. They sit in a discretionary family trust, a company or a self-managed super fund. You cannot leave a trust&#8217;s assets in your will. What you can leave, or what passes in other ways, is <strong>control<\/strong>. Whoever controls the trust after you die decides who benefits from it.<\/p>\n<h3>The levers of control<\/h3>\n<ul>\n<li><strong>The trustee<\/strong> holds the assets and makes distributions. If it is a company, control lies with its directors and the shareholders who appoint them. Those shares can pass under your will.<\/li>\n<li><strong>The appointor or principal<\/strong> can remove and replace the trustee. This is usually the ultimate power. The trust deed says who succeeds to it on death. Sometimes it passes to your executor, sometimes to named people, and sometimes the deed is silent.<\/li>\n<li><strong>A guardian or protector,<\/strong> in some deeds, whose consent is needed for key decisions.<\/li>\n<li><strong>The vesting date,<\/strong> when the trust must end and its assets be distributed.<\/li>\n<\/ul>\n<h3>What goes wrong<\/h3>\n<ul>\n<li>The deed passes the appointor role to the &#8220;legal personal representative&#8221;. The founder&#8217;s will appoints one child as executor, who then controls a trust worth more than the rest of the estate combined.<\/li>\n<li>Two children become joint appointors, cannot agree, and the trust is paralysed.<\/li>\n<li>The corporate trustee&#8217;s <a href=\"\/en\/company-secretary-deceased-shareholder-dispute\/\">only director dies<\/a> and nobody has authority to act until <a href=\"\/en\/do-i-need-probate\/\">probate<\/a>.<\/li>\n<li><strong>Self-managed super.<\/strong> After death, the surviving member or the executor may control the fund and decide who receives the death benefit, sometimes in their own favour. Australian courts have heard a number of <a href=\"\/en\/executor-disputes\/\">these disputes<\/a>.<\/li>\n<\/ul>\n<h3>Getting it right<\/h3>\n<ul>\n<li>Read the trust deed and the company constitution with the will, not separately.<\/li>\n<li>Decide who should control each structure, and make the deed, the company and the will say the same thing. Use a deed of variation if needed.<\/li>\n<li>Appoint alternate directors and successor appointors, and consider an <a href=\"\/en\/professional-executor-trustee\/\">independent or professional appointor<\/a> where the family is divided.<\/li>\n<li>For SMSFs, use <a href=\"\/en\/superannuation-and-your-will\/\">binding death benefit nominations<\/a> that the fund deed permits, and think about who will be trustee when you are gone.<\/li>\n<\/ul>\n<div class=\"ct-faq\">\n<h2>Frequently asked questions<\/h2>\n<h3>Can I leave my family trust&#8217;s assets in my will?<\/h3>\n<p>No. The assets of a discretionary family trust are held by the trustee, not by you, so your will cannot give them away. What you can pass on is control. Shares in a corporate trustee can pass under your will, and the trust deed decides who succeeds to roles such as appointor. Reading the deed together with your will is the only way to know who will control the trust after you die.<\/p>\n<h3>Who controls a family trust after the founder dies?<\/h3>\n<p>Generally the person who holds the appointor or principal role, because that person can remove and replace the trustee. The trust deed sets out who succeeds to that role on death: sometimes the executor, sometimes named people, and sometimes the deed is silent. The directors and shareholders of a corporate trustee also matter, so control depends on the deed, the company constitution and the will together.<\/p>\n<h3>What happens to a self-managed super fund when a member dies?<\/h3>\n<p>Control of the fund may pass to the surviving member or to the deceased member&#8217;s executor, who may then decide who receives the death benefit, sometimes in their own favour. Disputes of this kind have come before Australian courts. A binding death benefit nomination, where the fund deed permits it, and a clear plan for who will be trustee reduce that risk.<\/p>\n<h3>How can a family avoid deadlock over control of a trust?<\/h3>\n<p>Plan the succession of each role in advance, so the trust deed, the company and the will all say the same thing, using a deed of variation if needed. Appointing alternate directors and successor appointors avoids gaps in authority. Where the family is divided, an independent or professional appointor can avoid two joint appointors who cannot agree and leave the trust paralysed.<\/p>\n<\/div>\n<p><em>Chua Tan Associates advises families, executors, trustees and their professional advisers on estate planning, estate administration and estate disputes, in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an <a href=\"#ct-enquiry\">enquiry<\/a>. Advice is available in English, Mandarin and Cantonese.<\/em><\/p>\n<p class=\"ct-byline\"><em>Justin Chua (\u8521\u667a\u52cb), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal advice. Victorian law unless stated otherwise.<\/em><\/p>\n<\/div>\n\n\n<div id=\"ct-enquiry\" class=\"ct-eq\" data-no-translation>\r\n<style>.ct-eq{background:#f4f1ea;border:1px solid #e3ddd0;border-radius:10px;padding:22px 24px;margin:32px 0;font-size:16px;line-height:1.6}.ct-eq h2,.ct-eq h3{margin:0 0 6px}.ct-eq p{margin:0 0 12px}.ct-eq form{display:grid;grid-template-columns:1fr 1fr;gap:12px}.ct-eq label{display:block;font-size:14px;font-weight:600;margin-bottom:4px}.ct-eq input,.ct-eq select,.ct-eq textarea{width:100%;box-sizing:border-box;padding:10px 12px;border:1px solid #cfc6b4;border-radius:6px;font-size:16px;background:#fff}.ct-eq .full{grid-column:1\/-1}.ct-eq button{background:#8a6a3b;color:#fff;border:0;border-radius:6px;padding:12px 22px;font-size:16px;cursor:pointer}.ct-eq .hp{position:absolute;left:-9999px}.ct-eq small{color:#5f5a50}.ct-eq .ok{background:#e7f3e8;border-left:4px solid #3c8d40;padding:12px 16px}.ct-eq .bad{background:#fbeaea;border-left:4px solid #b03a2e;padding:12px 16px}.ct-eq .ct-direct{display:flex;flex-wrap:wrap;gap:10px;margin-top:14px}.ct-eq .ct-direct a,.ct-eq .ct-direct button{background:#fff;color:#2b2b2b;border:1px solid #cfc6b4;padding:9px 14px;border-radius:6px;text-decoration:none;font-size:15px}@media(max-width:640px){.ct-eq form{grid-template-columns:1fr}}<\/style>\r\n<h3>Tell us about the estate<\/h3>\r\n<p>A short message is enough. We reply in English, Mandarin or Cantonese, and quote fees in writing before any work starts.<\/p>\r\n<form method=\"post\" action=\"https:\/\/chuatan.com.au\/wp-admin\/admin-post.php\">\r\n<input type=\"hidden\" name=\"action\" value=\"ct_estate_enquiry\">\r\n<input type=\"hidden\" name=\"ct_ts\" value=\"1792509656\">\r\n<input type=\"hidden\" name=\"ct_lang\" value=\"en\">\r\n<input type=\"hidden\" name=\"ct_page\" value=\"https:\/\/chuatan.com.au\/en\/family-trust-control-after-death\/\">\r\n<div class=\"hp\" aria-hidden=\"true\"><label>Website<input type=\"text\" name=\"ct_website\" tabindex=\"-1\" autocomplete=\"off\"><\/label><\/div>\r\n<div><label for=\"ct_name\">Your name *<\/label><input id=\"ct_name\" name=\"ct_name\" required maxlength=\"120\"><\/div>\r\n<div><label for=\"ct_email\">Email<\/label><input id=\"ct_email\" name=\"ct_email\" type=\"email\" maxlength=\"160\"><\/div>\r\n<div><label for=\"ct_phone\">Phone, WeChat or WhatsApp<\/label><input id=\"ct_phone\" name=\"ct_phone\" maxlength=\"80\"><\/div>\r\n<div><label for=\"ct_language\">Preferred language<\/label><select id=\"ct_language\" name=\"ct_language\"><option>English<\/option><option>Mandarin<\/option><option>Cantonese<\/option><\/select><\/div>\r\n<div><label for=\"ct_type\">What do you need help with?<\/label><select id=\"ct_type\" name=\"ct_type\"><option value=\"\">Please choose<\/option><option>Someone has died and there is a Will<\/option><option>Someone has died and there is no Will<\/option><option>Someone has died and I am not sure if there is a Will<\/option><option>Making or updating a Will or estate plan<\/option><option>Executor or trustee question<\/option><option>A dispute about an estate<\/option><option>Other<\/option><\/select><\/div>\r\n<div><label for=\"ct_state\">Where are the assets?<\/label><select id=\"ct_state\" name=\"ct_state\"><option value=\"\">Please choose<\/option><option>Victoria<\/option><option>New South Wales<\/option><option>Queensland<\/option><option>Western Australia<\/option><option>South Australia<\/option><option>Tasmania<\/option><option>ACT<\/option><option>Northern Territory<\/option><option>More than one state<\/option><option>Overseas as well<\/option><option>Not sure<\/option><\/select><\/div>\r\n<div class=\"full\"><label for=\"ct_time\">Best time to contact you (optional)<\/label><input id=\"ct_time\" name=\"ct_time\" maxlength=\"120\"><\/div>\r\n<div class=\"full\"><label for=\"ct_msg\">Brief details (optional)<\/label><textarea id=\"ct_msg\" name=\"ct_msg\" rows=\"4\" maxlength=\"3000\"><\/textarea><\/div>\r\n<div class=\"full\"><button type=\"submit\">Send enquiry<\/button><br><small>We use your details only to respond to your enquiry. Sending this form does not create a lawyer\u2013client relationship. <a href=\"\/privacy-policy\/\">Privacy<\/a><\/small><\/div>\r\n<\/form>\r\n<div class=\"ct-direct\"><strong style=\"width:100%\">Or contact us directly<\/strong>\r\n<a href=\"tel:+61396023988\">Call +61 3 9602 3988<\/a>\r\n<a href=\"mailto:chuatan@tpg.com.au\">chuatan@tpg.com.au<\/a>\r\n<a href=\"https:\/\/wa.me\/61490369102\" target=\"_blank\" rel=\"noopener\">WhatsApp +61 490 369 102<\/a>\r\n<button type=\"button\" class=\"ct-wechat\" data-msg=\"WeChat ID copied\">WeChat: chuatan262<\/button>\r\n<\/div>\r\n<\/div>\r\n\t\n\n<div class=\"ct-guides\" data-no-translation><style>.ct-guides{margin:28px 0}.ct-guides ul{display:grid;grid-template-columns:repeat(auto-fit,minmax(230px,1fr));gap:10px;list-style:none;padding:0;margin:10px 0 0}.ct-guides li{margin:0}.ct-guides a{display:block;padding:12px 14px;border:1px solid #e3ddd0;border-radius:6px;text-decoration:none;background:#fff;height:100%}<\/style><h3>Estate guides<\/h3><ul><li><a href=\"\/en\/do-i-need-probate\/\">Do I need probate? 2-minute check<\/a><\/li><li><a href=\"\/en\/what-to-do-when-someone-dies\/\">What to do when someone dies: 30-day checklist<\/a><\/li><li><a href=\"\/en\/letters-of-administration-victoria\/\">No Will? Letters of administration and who inherits<\/a><\/li><li><a href=\"\/en\/estate-planning-victoria\/\">Estate planning: Will, power of attorney, medical decisions<\/a><\/li><li><a href=\"\/en\/testamentary-trusts\/\">Testamentary trusts<\/a><\/li><li><a href=\"\/en\/superannuation-and-your-will\/\">Superannuation and your Will<\/a><\/li><li><a href=\"\/en\/executor-disputes\/\">Executor problems and disputes<\/a><\/li><li><a href=\"\/en\/professional-executor-trustee\/\">Professional executor &amp; trustee services<\/a><\/li><li><a href=\"\/en\/%E5%AE%A2%E6%88%B7%E8%AF%84%E4%BB%B7\/\">Client reviews<\/a><\/li><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Trust assets don&#8217;t pass under a will, but control does. Appointors, trustee companies and SMSF control after death, what goes wrong and how to align deed and will.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,106],"tags":[],"class_list":["post-17026","post","type-post","status-publish","format-standard","hentry","category-25","category-trusts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.2 (Yoast SEO v28.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Control of Family Trusts After Death | Chua Tan Associates<\/title>\n<meta name=\"description\" content=\"Trust assets don&#039;t pass under a will, but control does. 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