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Partner - Accredited Specialist in Wills & Estates Law
Partner - Accredited Specialist in Wills & Estates Law and in Property Law
Partner
Senior Associate - Accredited Specialist in Wills & Estates Law
Discretionary Trusts and Family Trusts
Estate planning involves more than just the consideration of future events such as death or incapacity. For many business people and professionals, there are clear advantages to be gained by structuring their business or investment affairs through an appropriate trust structure. Family trusts can be used:
- to minimise income tax
- to provide for income to be shared between family members and investment vehicles
- to enable assets to be held independently of ‘at risk’ individuals
- to minimise the risks of having assets exposed to claims by creditors.
A family trust is a form of discretionary trust under which assets are held in the name of a trustee for the benefit of a group of beneficiaries, usually comprising the immediate and extended family of the key persons.
While the trustee can be one or more individuals, we normally recommend having a company as trustee, to avoid continuity issues which can arise if an individual trustee dies or becomes bankrupt.
Care needs to be taken in drafting and administering family trusts to ensure that they meet revenue and trust law requirements. Your accountant should be able to advise you about the suitability of a family trust for you.
Family trusts can be subject to claims under family law and bankruptcy law. We can advise you on the structure of a family trust and the implications of using a trust based on your particular circumstances.
For more information contact:
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