Reasons for setting up a family trust?

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

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.

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

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

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

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.

To make provision for a family member with special needs.

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.