Setting up a Trust can provide a robust way of protecting assets.
In addition to setting up your trust we are able to...
A very brief overview of trusts is produced. Much greater detail on trusts can be obtained by registering and downloading for free our Trusts in NZ booklet.
A trust is formed when a person(s) known as the Settlor(s) declares the trust in a formal document which is known as a Trust Deed.
The Trust Deed essentially sets out the rules of the trust that the Trustees must follow and will include the names of the trustees and beneficiaries of the trust.
Once property is given to the trust it is given, the giver no longer has control over the property.
A few good reasons why you may wish to consider a trust are:
Asset should be transferred at full market value and a solvency check to ensure that creditors will not be prejudiced from the gifting
In family trust it is common to transfer the family home to the trust. With the abolition of gift duty it would be prudent to properly redocument mortgages in the name of the trustees
With the recent abolition of Gift Duty you may think that all issues around getting assets into a tɲust have gone. This is not so and it could be argued that it is now more important to ensure you obtain excellent advice before establishing a trust.
Some of the issues that are more prominent mow are matters such as over gifting which may place the donor in a position where he or she gifts more than is prudent and the affect this might have on trust deed drafting which could subsequently destroy the benefits of establishing the trust or creditor avoidance issues are
We strongly urge you to contact Norrie & Daughters for free discussion on if a trust is suitable for your circumstances. Our Trusts in NZ booklet contains a lot of useful information on trusts that you should read. You can obtain a copy by clicking below.