Family Trusts, Wills and Estates

Wills, Family Trusts, Business Trusts and advice as to best form of ownership.

Wills
It is benefical and desirable to have a Will prepared by your Solicitor. If you do not have a Will then the Administration Act 1969 will apply and this can have consequences that you may not intend. Making a Will gives certainty to your wishes. You need to consider who to have as trustee or executor (or more than one person) and who the beneficiaries are to be and how your estate is to be divided and if you have a Trust who the replacement Trustees will be.

Estate Planning
It is essential that you give consideration to the assets that you have, the extent to which there is a debt to a financial institution, and the best form of ownership. People in a second marriage or second relationship must give consideration to how assets are owned. IF assets are owned jointly then on the death of one partner/spouse the surviving partner/spouse will generally inherit the whole asset. This can cause difficulties for children of a former relationship as those children can be disinherited. The right mix of ownership and estate planning provisions are necessary to achieve the right balance and the right result.

Family Trusts
A family trust is a legal way to protect and hold assets for your family. For example your major assets - such as your home - are put into the trust and are no longer legally owned by you. You will also need to know how it works and when you should set up your trust.

Traditional reasons for establishing a family trust are to give protection against creditors and provide for Family and inheritance protection. Protection from government and means testing and protection against creditors is essential for people in business.

Family Trusts are about asset protection. Assets are transferred at current value and gifted off.

How Does it Work?
If you are the person setting up the trust, you hand over the assets to another person (trustee) to look after for a third person (beneficiary). The trustee is responsible for looking after the assets of the trust in the best interests of the beneficiary. In most cases you will be trustee and beneficiary - there can be more than one trustee and beneficiary.

A trust gives protection in a wide range of situations such as family breakdown or business problems. But it doesn't mean you can't have a say in what happens. In fact, a family trust can help you ensure that your wishes are carried out, even after your death.

When should you set up your trust?
While this depends on your personal circumstances, to get the maximum protection and benefit, then as soon as you can as as to minimise asset testing and creditors.