What is a family trust?
A family trust (also known as a discretionary trust) is a way to control and protect a family’s assets and/or conduct a family business.
A trust is usually set up by a member of the family and can be used to protect the family group assets from liabilities, a family trust also allows families to pass on the group assets to future generations relatively easily. Other benefits of having a family trust include certain tax benefits, asset protection and the clarity of avoiding challenges against certain assets in the event of the death of a member of the trust.
The terms and conditions of trust, including a list of its beneficiaries, are written up in the form of a deed. Once the deed has been drafted and then finalised, the trustee or trustees will then sign the deed. Once signed the trustees are legally responsible for managing the trust’s assets.
If you are interested in establishing a family trust or you have a question about the management of a trust you are involved in contact our expert estate lawyers today.