WTLR Issue: October 2014 #143
The Dion Family Trust was set up by deed as a discretionary trust in Papua New Guinea in August 1973 when Papua New Guinea was an external territory of Australia. It contains the following clause:
’15 [all potential beneficiaries] or any of them may at any time with or without the consent of the Trustee by deed revoke all or any of the trusts hereby declared and declare other trusts of the settled property and income derived therefrom in favour of such person or persons the said [potential beneficiaries] or any of them shall in their absolute discretion determine with or without a like power of revocation and variation PROVIDED THAT no trusts so declared may be declared in favour of the Settlor, the Trustee or any beneficiary who declares such trusts and they shall not nor shall any of them derive any benefit of any kind by virtue of trusts so declared… ‘...