family trusts
Many believe you need to be one of the rich and famous to have a family trust - wrong!
A Family Trust is simply a way to protect the assets that you wish to be kept for your Family and people who are important to you!
New Zealand recognise different types of Trusts from Express which are either written or oral to Implied Trusts which are ....implied! We will be dealing with Express Trusts which rather than being oral are written. These written trusts are either Testamentary (in a Will) or Inter Vivos (in a Deed) ... whew
Now Family Trusts are the Inter Vivos types and there are two types that are generally used in New Zealand. One is the Fixed Trusts where the interests of the Beneficiaries in the trust are ... fixed!
However, the most common Family Trust used in New Zealand is the Discretionary Trust where the Trustees have the discretion regarding the distribution or not of the Trust's assets and decide which beneficiary, if any would benefit from the assets of the Trust.
The Trust can exist for up to 80 years so think about the intended future for the Trust.
YOUR JOB?
1. List all the assets that would be part of the Family Trust.
2. Think of two or three people you trust who will be Trustees with you and you can rely on to take care of the Trust assets and most importantly the beneficiaries. Ask them.
3. List all the people you would like to be beneficiaries with you of the Trust.
OUR JOB? Protect YOUR Trust Assets and the beneficiaries by preparing a Family Trust that suits your needs!