For many people the principal purpose of a family trust is to protect your family’s
assets and wealth against risk. This is done for a variety of reasons, some of
which are to:
• Protect assets from business risk (if you own a business or have a senior
management role in a business)
• Provide for special family needs, such as a child with a disability
• Protect your assets in a second marriage/relationship situation and/or
relationship breakdown
• Prevent claims on your estate when you die (family protection and
testamentary promise claims)
• Minimise tax liability
• Defer liability for a possible future capital gains tax or similar taxes
• Protect against income and asset testing for, say, rest home charges
• Provide funding for children’s or grandchildren’s education costs
• Allow family assets, such as a business or farm or holiday home, to pass to
the next generation without exposing inheritances to relationship property or
other claims, or
• Give to the community through a charitable trust.
For more information please contact Tina McLennan
