Long term management of your assets – a family trust

Based on anecdotal evidence there may be between 300,000 and 500,000 trusts in New Zealand. 

A trust is a set of legal relationships between a settlor, trustee(s), and beneficiaries.  Settlors transfer assets to trustees who hold legal ownership and manage them for the benefit of beneficiaries. Most trusts are family or discretionary trusts which means that trustees determine who can benefit out of the list or classes of beneficiaries.

Trusts can last anywhere up to 125 years.  Reasons for setting up a trust include avoiding the pitfalls of the Property (Relationships) Act 1976, avoiding estate claims after death, and protection from creditors.  Trusts are also seen as a useful mechanism for managing assets long-term or to support intergenerational wealth transfer. 

Before considering a family trust you should weigh up the advantages and disadvantages and seek advice as to whether they are right for you and your circumstances. 

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Disclaimer: The contents of this article are general in nature and are not intended to serve as a substitute for legal advice on a specific matter.  In the absence of such advice no responsibility is accepted by Bryce Williams Law Limited for reliance on any of the information provided in this article.