Shelter your assets in a family trust
Usually a family trust is created to administer and manage different sources of wealth and property that a family has accumulated over the years. The assets may be in the form if real estate, stocks and bonds, certificates of deposit, and other various assets. Usually assets that come from varied sources will need overseeing and management to the extent of their complexity. Also, by placing these assets under a trust arrangement, they will fall under the laws of trust, to which extent there are elements of accountability required by the trustee to be vigilant and trustworthy with the management of these assets. You need to talk to a qualified trust lawyer to make sure this is set up correctly.
The functions of a management firm are to not only be the conservator of the assets, but also to give advice to the beneficiaries and other interested parties. The administration and trust capabilities require a high degree of education and training in financial areas, financial planning, investment management, banking services, estate planning, advisory on philanthropic issues, and family transfer issues. There is also a need for careful record keeping to be able to show the tax authorities that the trust has been administered correctly.
If the family has set up any foundations or charitable endowments, or other charitable funding, the trust can assist in these areas as well. There is expansive thinking too, in the global look at investment and management issues. With the technological reach that is available, there are secure opportunities that are world-wide in nature, and there are opportunities that are left on the table, if they are not explored on a global basis.
The idea of a trust goes back to the Crusades, when English knights left their estates in the hands of friends, while they went off to battle. The trust concept of common law is a well-established precept and has been used for centuries for the holding and administration of property and assets, in plain sight with standards of accountability. The reliability and safety of the trust system has been proven by the passage of time, and is very useful in helping to organize and protect large holdings of wealth that is held by a family group.
The family trust is an instrument where assets are placed into the trust, and the trust takes over the ownership of the property. The family can still use the assets, such as a house, if that is what the trust documents say, but they do not own the house. This provides protection from creditors, money for special needs can be set aside, it is easier and more manageable to pass assets to the next generation, and avoids unwanted claims of assets upon death. It is also possible to have income assets taxed at lower rates than would be the case if they were to be individually owned.
Trust lawyer in Albany
Traditionally, banking institutions have held the reins of the companies that were trust management firms, but now we see other institutions that are being formed that handle duties that go far beyond what some of the banks normally handle, such as securities, real estate, insurance, international and global reach, and an entire gamut of financial disciplines.
Further, due to the complexity of the laws relating to family trusts in New Zealand, many law firms offer trust administration. This can be a smart choice as they have the resources and understanding to prepare and issue all of the necessary documents so that a trust does not fall foul of the tax laws. For people who live near Albany, a North Shore family trust lawyer can help you.
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