There have been many changes to trusts, trustee duties and how people perceive trusts over recent years that many people are now looking to wind up their trust. Now is definitely a good time to review your decisions for setting up a trust – but it’s not a given that you should be winding it up.
Here are some things to think about when deciding whether your trust is still of use to you.
Do you have a high-risk job?
- Is someone likely to sue you?
- Do you have a lot of potential for personal liability in your job?
A non-exhaustive list of jobs that might be considered high risk includes; lawyers, directors, architects, builders, and dentists. By keeping your personal and professional life separate, you can help to protect your wealth for the benefit of your family.
Are you self-employed?
Running a business is often hard work and comes with both risk and reward. At a glance, your trust can still help to protect the balance of risk verse reward within your business. At Morrison Kent, our Trust and Estate specialists have a breadth of small to medium business experience to guide you.
Do your New Zealand based adult children need assistance?
There are a lot of caveats in this one, but if this idea rings true with you then we recommend you discuss the details with us. A trust can be an excellent avenue to distribute financial or other assistance to your children. By engaging a lawyer at Morrison Kent we can also assist you with relationship property protection for your investments, such as if you’ve gifted money to your child.
Are you a blended family?
Life is often complicated. Your trust can help to simplify your relationships by putting financial considerations to one side and letting you focus on the important things. Having a trust allows you to have a detailed and honest brief to your trustees about how your assets will be managed and to distribute your wealth once you are gone. That responsibility is passed onto your trustees to deal with each person in a fair and unbiased way.
We recommend you get your Trust Deed out, dust it off and take a serious look at how it’s written and what it can do for you. Let’s discuss whether your trust is the best protection for you and your family. We’ll give you honest advice on your options for the future of your family’s assets.