05 Jul Family Trusts and Your Trust Deed | Auckland Law Firm Article.
Unlike a will, a family trust can protect the ownership of your assets while you are alive. You transfer the legal ownership of the assets to the trust while continuing to use and enjoy them.
When it comes to deciding upon the pros and cons of a family trust, you should considerr the following key questions:
1. Should you have a family trust? and if yes
2. How is a family trust established, and what is the best way to structure it?
3. What are the on-going administration and management requirements?
In our detailed and personalised Quay Law trust presentation, our Auckland lawyers cover these key questions in more detail.
A common question raised during these family trust presentations are – What is a trust deed?
The trust deed is a legal document that sets up the trust and should be drafted to specifically provide for the objectives of the person(s) establishing the trust, the appropriate class of people intended to benefit from the trust assets, the risk these person (s) are hoping to mitigate or protect themselves from and the type of assets that will be held in the trust.
The trust deed should deal with the following:
- It is preferable to have at least one independent trustee.
- Whether the power to appoint and remove trustees should be held by someone independent of the trust, or not.
- The class of beneficiaries of the trust should generally be narrow, but the trustees should be able to add more beneficiaries later if required.
- The trust deed should have two classes of beneficiaries, discretionary beneficiaries and final beneficiaries.
- The beneficiaries should be able to benefit from the trust assets in a number of different ways so that income or capital can be applied in a way that is best for that person.
- The trustees should have power to vary the provisions of the trust deed.
The area of trust law is complex and changing. At Auckland law firm Quay Law we recommend that you seek advice from a specialist trust lawyer to ensure your asset structuring and any trust you form provides you with the best possible protection.
Contact a Family Trust Specialist to book your 1/2 hour FREE trust presentation
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