Why Would You Even Want A Family Trust?
Lots have been written about the reasons why someone would want to set up a Trust but in the main, there are 4 motivations for creating a Trust. In today's uncertain economic environment the sooner you move on this the sooner you will benefit!!
Reason 1 – Asset Protection When you move assets into the Trust they become protected against creditors, WINZ and other parties. But remember, if the documentation isn’t correct and if the transfer documents don’t contain those special Hawkins and entrenchment clauses we so often talk about, asset protection will indeed be threatened. Reason 2 – Tax Minimisation Trusts, if established correctly, can help you legally minimize your taxation liabilities. A caveat however applies. You must take specialised advice when setting up Trusts and other structures to ensure the structure is tailor-made to suit you and your circumstances.
Reason 3 – Asset Testing If you need help in the form of a subsidy from the government, such as a rest home subsidy, you will be means-tested. If you own nothing, the subsidy will be available immediately. Moving assets to a Trust means you will be asset poor but you will have control over the assets that are held by the Trustees of your Trust.
Reason 4 – Provision for Future Generations
Often a family will acquire assets and will want to ensure future generations can enjoy those assets. For example, you might buy a property and want your children and your grandchildren to be able to enjoy the benefit of this for years to come. One way of ensuring the asset is protected for future generations to use is by putting it in a Trust with specific trust deed provisions so that the Trustees cannot sell the asset in future times.
COVID 19 has shown us the importance of asset protection, the government will not help everyone, the economic future for business owners is uncertain, take action now.
We are offering one hour free consultation on setting up your trust if you would like some advice.
Contact us now as this offer ends 31 August - Click here