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