What do you think you need to know about when setting up a family trust with your lawyer?
First you will need to decide which of your assets should be placed into your trust. A value should then be established for these assets. In most cases an asset would be the family home, but other things of value like cash, bank deposits, shares, artwork etc. could also be included.
Once the trust has been established, the ownership of these assets will then be transferred to the trust and the trust then owes a debt back to you, the settlor ( see previous legal Quay Law blog post for trust terms | definitions). This debt can then be ‘forgiven’ through a process called gifting.
A legal document called a ‘trust deed’ will formally set up the trust. It will appoint the trustees, list the beneficiaries, and state various rules for the administration and management of the trust. The trust deed needs to be very carefully written, preferably by a lawyer.
To meet with one of our lawyers to discuss family trusts and how they could potentially suit your situation please contact our law firm. Quay Law has offices in Auckland’s Eastern suburb.