Establishing a Trust
When we are asked by our clients how they may protect assets, including property, from creditors, one option is to transfer these assets and/or property to a Trust. While creditor protection is one of the objectives of forming a Trust, it should not be used as the only reason for setting up a Trust.
A Trust is also one of the tools that can be used when assisting an individual and their family in carrying out an Estate plan on their behalf. Other reasons for setting up a Trust are as follows:
- Potential taxation benefits including a lower tax rate than the highest personal tax rate and the ability to income-split.
- Control over your assets and property (together with any income that they may provide) as well as control over how the assets and property may be distributed.
- Protection of family assets and property. This includes ensuring that they are left to members of the family that should receive them and that the assets and property are not at risk due to family members entering into unsatisfactory marriages or de facto relationships.
- Means testing. It is possible that a Trust could help avoid means testing by Work and Income New Zealand for the purposes of government funded care.
- Protection for the next generation. This allows an element of control over a person’s assets and property after their death, and can protect these from members of the family who may not have the necessary financial skills to look after and manage the assets.
- Creditor protection. It is possible to "ring-fence" your assets and property from possible creditors by transferring them to a Trust. It is important that the transfer of assets and property to a Trust is completed at a time where a potential liability is neither existing nor contingent.
John Stirling of this firm would be happy to meet and discuss with clients their family and business situation with the intention of making recommendations for an Estate plan, including possibly setting up a Family Trust.
“I have used Turner Hopkins for my legal services for over eight years. I have always found their level of service excellent and their work to a very high standard. I have used various lawyers at their firm for various businesses I have been involved with and have always had very positive experiences. I would highly recommend them.”
“To Michael Robinson – I wanted to thank you and your colleagues for many years of excellent service to the Bank. You have an outstanding business that has proved to be one of the most reliable and ethical businesses that Collections have dealt with in the almost 9 years I was with the Bank.”
“Joy, we cannot thank you enough for your help with our purchase! You have been wonderful to deal with and so proactive (and patient with my numerous emails). We will be visiting NZ in April so will make sure we drop in to thank you in person.”
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.”
“John is very easy to talk to, he never makes you feel dumb, and never makes you feel like you are wasting his time for asking questions. He explains everything very clearly, every time. John's support staff are also very efficient and so easy to deal with. No detail is missed when dealing with them. My husband and I are fans of them all :)”