Constructive ownership through discretionary trusts
A person or a member of a class of persons in whose favour, by the terms of a discretionary trust, capital the subject of the trust may be applied:
a) in the event of the exercise of a power or discretion in favour of the person or class, or
b) in the event that a discretion conferred under the trust is not exercised,
is, for the purposes of this section, a beneficiary of the trust.
A beneficiary of a discretionary trust is taken to own or to be otherwise entitled to the property the subject of the trust.
Also any property that is the subject of a discretionary trust is taken to be the subject of any other discretionary trust:
a) that is, or
b) any trustee of which (in the capacity of trustee) is, a beneficiary of it.
Note: person includes a landholder.
Discretionary trust is defined in the Dictionary of the Duties Act 1997.
