Although family trusts have become popular in recent years they have been with us in one form or another for four hundred years and their purpose has been much the same.
To protect Important Assets
Assets can be put at risk in a number of different ways. These can include business failure, legal action or a relationship breakdown. We also do not know what the future holds.
When someone perceives that assets could be put at risk through that person owning them then they seek to divest themselves of those assets. They would usually still like to obtain the use or take a benefit from the assets so they will transfer the assets to trustees who would hold them on behalf of a family group rather than an individual.
The transfer process usually takes a little time but in the end the assets are held for a group of people rather than an individual so are not put at risk through the actions or situation of any one individual.
Ask yourself the following questions
- Do you or your partner operate your own business?
- Do you or your partner give advice or provide a service on which others rely.
- Do you believe that in the future you could not be entitled to a Government benefit because of the level of assets that you own?
- Are you afraid that your family assets could be put at risk in the event of your death or separation from your partner?
If the answer to any of them is ‘Yes’ then using a Family Trust may be of benefit to you.
If you would like to know more contact your Advisor who will arrange a ‘no obligation’ consultation with an experienced Trust Advisor to look at your personal situation.
Information brought to you by NZ Trustee Services Ltd
Call 0800 NZ TRUST (0800 698 787)
DISCLAIMER: GrownUps is not making a recommendation to you. GrownUps accepts no responsibility for decisions made as a result of using the information provided.