Family Trusts are a device to create an entity which has a separate legal identity beyond the individuals that are part of it.
Unlike a company, there is no central register and each trust is created by Deed. The Deeds vary between Lawyers, at Kelly Flavell Law we utilise a series of precedents that have been tried and tested amongst the legal profession. As with anything legal there are terms and terminology used and associated with trusts, sometimes these are confusing but the simplest way to consider a trust, is as a very limited club or society rather like the rugby club or the dance club. In this case the membership is limited to your immediate family, the trustees are the managers of the club whose purpose is to protect the assets and indeed grow the assets for and on behalf of its members.
The purpose then is to protect assets for the members of the family trust and to eliminate the risk of attack by outsiders.
Trusts are used to protect property from:
- In the case of business failure
- Disgruntled spouses or partners
- In the case of second or third relationships
- Where you are unhappy with children
Used wisely they can protect the assets of up to three generations from the ravages of daily life.
At Kelly Flavell Law we pride ourselves in providing the initial consultation in respect of Family Trusts at no cost to those seeking guidance on trust formation. This is in keeping with our general philosophy, that it is important to have clients understanding and aware of the nature of the obligations and requirements that go with the formation and management of a Family Trust.
For more information on Family Trusts or how we can help you, call us for a complimentary consultation on how a Family Trust may be of benefit to you, please call us on 09 535 2150.