Do you own assets that you have taken years to build up? Do you want to be sure that you can protect those assets for yourself and your family? Is a Family Trust right for you?
Family Trusts are created when the person who wishes to create the Trust transfers property to Trustees who hold and use that property for the purposes specified in the Trust Deed. The most predominant of those purposes is to use and manage the Trust property for the benefit of the Beneficiaries of the Trust.
There are a number of areas where a Family Trust can protect you and your family:
- Family Protection Act claims
- Relationship property claims
- Conflicting interests in blended families
- Business risks
- Special needs dependants
We can assist with all aspects of Family Trust formation and administration including:
Family Trust documents are not a one size fits all . We will draft Trust documents that are tailored to your specific needs and aims.
A Family Trust can acquire assets either by purchasing them from third parties or from the person establishing the Trust or other family members. The Trust raises funds for its purchases by loans from a bank or by signing a document acknowledging that it owes the person transferring the asset an amount equal to the value of the asset purchased, or a combination of both.
We can assist with advising on which assets to transfer, completing the transfer documents and loan documentation.
When the person establishing the Family Trust or other family members have transferred assets to the Trust, the resulting debt owed by the Trust to that person can be reduced in a number of ways. The most common is for the debt to be forgiven. While gift duty has been abolished, evidence of a gift still needs to be completed.
We can assist in preparation of the necessary gifting documents. We can also advise you as to the best way for the gift to be completed with respect to your particular circumstances.
There are times when creditors or others may try to challenge a Trust to get at the assets of that Trust. It is important, if such an attack is to be resisted, that the Trust complies with all the requirements of the legislation including having appropriate Trustee Resolutions and Minutes.
We are able to advise Trustees of their responsibilities and statutory obligations and assist with the fulfilment of those.