Reasons for setting up a family trust?

  1. To protect your assets from creditors.  This will apply particularly for a business person who is self-employed or running a small company.

  1. To provide for children without those children being able to waste the capital assets or have them subject to the Property (Relationships) Act 1976 on a marriage break-up.

  1. To protect your assets from a possible claim brought by a de facto partner or spouse, under the Property (Relationships) Act 1976.

  1. Possible safeguards against future Government taxation legislation – eg a return of death duties.

  1. By keeping assets in a different legal entity thus being a possible hedge against asset testing for future Government pension.

  1. To help avoid claims which may be made against a deceased person’s estate, under the Family Protection Act.  This may be of particular significance in a second marriage or de facto relationship where there is often a conflict on death between the surviving second partner and the children of the first marriage.

  1. To make provision for a family member with special needs.

  1. To provide an opportunity to create wealth within the family.  The Trust continues after the death of the Settlor so that assets can remain without a deceased estate having to be wound up or assets distributed.