What is it?
A Family Trust refers to a discretionary Trust set up to hold a family’s assets or to conduct a family business. Generally, family trusts are designed for asset protection. They are also established to allow a parent to transfer assets to his or her children directly and prevent assets from being automatically inherited by a spouse. This is not to say, though, that a spouse is precluded from being a Beneficiary under the Trust.
How does it work?
You can place any asset you wish into a Family Trust. Real property (i.e. a house or land) is a common choice of asset. If you decide to give your home to the Trust as an asset, you can arrange a “lease for life” with the Trustees, which allows you to continue to live therein for your lifetime. You can also move houses by authorising the Trust to sell your property (if you so wish) and subsequently, purchasing another property of your choice.
Benefits
Providing on-going management of funds for family members who may have difficulty managing inheritance themselves or be at risk of influence in their affairs.
Protecting your assets for the benefit of your family or a charitable organisation (or a combination of both).
Protecting your assets against creditors and from certain duties and taxes.
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At FBNQuest Trustees, we provide the expertise for the establishment of a well-crafted Estate Plan, to ensure that your assets are well protected and managed according to your desires.