Family Trusts

A Family Trust is generally put in place to provide for the following:

• Provision for children and/or grandchildren (including future asset protection from creditors or marriage breakdown of children or grandchildren).
• Provision for beneficiary who is unable to manage his/her/their own affairs.
• Protection of assets from future capital gain taxes, including potential estate duty.
• Vehicle for retirement savings.
• Vehicle for General Investment.
• Potential for income splitting by using lower marginal tax rates.
• Protection of assets from creditors.
• Eligibility for rest home subsidy or other means tested benefits.
• Protection of assets from marriage breakdown.

The Parties To A Family Trust Settlor Trustees Beneficiary

The following documentation is required and should be prepared by a professionally qualified person, normally a trust officer or solicitor experienced in the formation and management of family trusts. Contact us and we can assist in this process

Trust Deed(s) to be prepared, together with a Memorandum of Wishes.
Sale and Purchase agreements.

• Application to your bank for consent for the transfer of any mortgage over to the Trust for any property being transferred to the Trust.
• A memorandum of transfer.
• Transfers to be prepared for any shares and other assets to the Trust.
• A Deed of Acknowledgement of Debt recording the advance from you to the trust to the value of the assets you are transferring to the Trust.
• A Deed of Forgiveness of Debt for up to $27,000 (without any gift duty) and a Gift Statement. Each year a further Deed of Forgiveness of Debt and Gift Statement can be signed until the debt is written off.
• Apply for an IRD number for the Trust. Tax returns for the Trust and Annual Statements would be prepared.

Wills

New Wills are required to be prepared incorporating:

• Appointment of Trustee.
• Forgiveness of any debt to the Trust.
• Residue of your estate to your Family Trust.

Enduring Power of Attorney

An Enduring Power of Attorney is generally required enabling someone to act on your behalf, on your instructions, or if you are unable to act through incapacitation or ill health.

We recommend that all parties execute an Enduring Power of Attorney.

Benefits

It is important when establishing a Trust that you consider fully all the implications.
Trusts are a long term commitment and effectively managed and utilised offer protection for family wealth.