Trust Formation & Management
A Family Trust can be a useful scheme to protect your larger assets such as a home, bach, rental property or shares in a business from creditors in the event of a business collapse. Particularly useful for self-employed people.
- Protection from relationship property claims by a departing spouse or de facto partner.
- Trusts also remain in place after your death and are therefore a useful estate planning tool.
- To hold assets for incapable beneficiaries
- It allows you to pass your wealth in to trust while you are alive and to eliminate a challenge that might otherwise be made if you left your wealth to be distributed pursuant to a Will. A Trust allows you to retain control but set up a framework for eventual distribution to beneficiaries on your terms.
A Family Trust can not be treated in isolation but rather must be considered as part of an estate plan. Accordingly you should also have a Will (which amongst other things may appoint a replacement trustee upon your death) and a list or "memorandum of directions" to your fellow trustees so that in the event of your incapacity or death the Trust may be then administered, and funds and income eventually distributed, in accordance with your instructions.