Trusts. An ancient modern tool


Why have a Trust?

The simple reason for establishing a Trust is to separate assets from your ownership to ensure they are protected for your intended beneficiaries.

The main reasons for establishing a Trust are:

• Protection of your personal assets from the risks of business. Using a Trust ensures you don’t loss the family home and other personal assets in the event of your business failing. The transfer of your assets to a trust must be done before any creditor action or business failure is evident.

• To ensure your assets transfer to your children, without challenge, and they remain protected should their relationship with their partner breaks down in the future. • To provide for dependents such as children or grandchildren - for their well being and support, their education, or if they have disabilities or an inability to manage money. • To ensure continuity of family ownership for several generations that want to keep the assets in the family. • To protect separate property within a marriage or a de facto relationship. • To provide for unequal sharing of your assets on your death. Such as different amounts for children of a prior marriage or a child with limited money management skills. • To provide long-term support for a charity.

Provided a Trust is properly administered and maintained it is usually a bullet proof a way of protecting your assets for you and your family into the future.

One of the strongest reasons I have seen is the protection a Trust gives by identifying a method of distribution of money either placed in the Trust from insurance policies or generated by the trust realizing assets or investments. If you have minor children and up-to-date wills you may still have created an issue for your Executor by placing these Insurance benefits into an open cheque account with no guidance on how the money is to be used or invested for the use of the minor children care and protection.

With a Trust you give the Trustees the guidance they need to fulfill your wishes.

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© Alan Fleet 2020

Mobile Phone: 021 683 787

Visit: www.sharenz.com 

Email: alan.fleet@sharenz.com

PO Box 4423 Kamo, Whangarei 0141

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