Skip to main content

Trusts are specifically designed and drafted to protect our assets so our loved ones can benefit from them beyond our lifetime.

When you set up a trust, your assets no longer ‘legally’ belong to you, they will be owned by the trustees, which can initially sound intimidating. Not everyone will need a trust, but many people benefit from no longer personally owning their assets in various ways.

If you’re thinking of setting up a trust to hold your assets, here are some of the situations where a trust is right for you and your situation.

If you are self-employed or want to protect assets from business venture failure

In the event of a business downfall, you want your family home, or other properties and assets, to be protected against creditors. If you own your own business, or are personally undertaking a risky business venture, setting up a trust allows your assets to remain safe from creditors, giving you and your family peace of mind.

To protect assets in the long-term for your children and grandchildren

When creating a trust, you can decide what happens to your money and assets. This can include protecting your funds so your beneficiaries – generally your children and grandchildren – can benefit from them even when you’re gone, and on your specific terms. While you will eventually pass away, you want to make sure your funds will be useful for future generations to come.

Protection from estate claims and assist in estate administration

Setting up a family trust is the most commonly used method of estate protection. Trusts help protect assets from things such as relationship breakdowns and unwanted claims, ensuring your assets are distributed to the right beneficiaries, i.e. your children, and not their partners. It can also simplify estate administration by transferring assets to the trust, as the assets will not form part of your estate if they are in a trust.

To protect and manage assets for a family member unable to manage their own affairs

When people are no longer able to manage their own affairs due to disability or illness, trustees can handle asset protection and management. Trust deeds need to be carefully written and properly managed by professional trust law experts to ensure that the provisions of your trust are met. This also means that you can prevent fraud and avoid the trust from being declared invalid.

Gillespie Young Watson Law – Specialist Wellington Trust Lawyers

Our trust law experts here at Gillespie Young Watson have the experience and expertise required to advise on any family trust NZ wide, providing tailored professional advice on how to protect your assets. If you think setting up a trust suits your situation, contact us today at 04 569 3997 and we’ll let you know how we can help.