A special kind of benefit - Beck v Colonial Staff Super
Financial Services update - 25 August 2015
In Beck v Colonial Staff Super the court held that a trustee's exercise of its power to amend the relevant trust deed in order to remove a discretionary benefit was invalid and in breach of the trustee's duties under general law and superannuation legislation.
Somewhat surprisingly, it was also held that the relevant amendments to the trust deed to remove the discretionary benefit contravened the trustee's obligation to protect "accrued benefits".
The decision raises some cause for concern in relation to amendments to trust deeds which remove a beneficiary's right to discretionary benefits.
For an extended explanation of this decision and our views on its application, please click here.
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