What is a Trust
A Trust is an entity, which holds and owns property for the benefit of the beneficiaries. It allows you to transfer the ownership of property and other assets out of your own name so that they can be protected for a variety of reasons, whilst still maintaining control over them.
The formation of trusts is a practice that is becoming increasingly common for family units, individuals and entrepreneurs alike. No longer are trusts only available to the wealthy, today trusts are working tools that can help protect your property from third party claimants.
In New Zealand, people are becoming increasingly aware of the advantages that trusts offer and are beginning to establish trusts earlier in their lives, for the purpose of obtaining maximum benefit from the protection they offer.
If you are a property investor, own assets, are in a serious relationship, have children or own your own business, then setting up a Trust is something you should consider.
By removing assets from your personal ownership and transferring them to Trustees, you’re protecting them from any claims that could be made against you personally.
Whether this kind of asset protection benefits you depends on various factors, all of which are quite unique to your personal circumstances. At Property Tax Returns we can provide you with all the information you need to help you make that decision.
Some common purposes of establishing a Trust are to:
+ Protect the family from adverse events;
+ Protect investment properties from third party creditors;
+ To gain tax advantages in certain circumstances;
+ Reduce the chance relationship property claims, and
+ minimise personal wealth in relation to asset tested benefits such as residential care subsidies.
Setting up a trust is easy
Trusts can be tailored to distribute assets however you may wish, minimise tax liabilities, and safeguard the future of your family. Trusts are only effective if they are set up with your needs and financial goals in mind. We want to help you make informed decisions about creating a Trust. For a quick, accurate and personal service get in touch with us today.
Our goal is to offer you a timely and personal service so your Trust can be established quickly and accurately. Please contact us today to make an appointment to discuss your structuring options.