The pros and cons of owning property through a family trust often come up when you talk to friends and family about buying and selling property. The truth is, the laws of trusts are complex and the benefits and disadvantages of setting up a trust to own property will depend on your personal situation.
What is a family trust?
A trust is a vehicle for holding property for the benefit of people or organisations called beneficiaries. Generally, a trust is set up by The Settlor(s). The Settlor(s) transfer assets, including property, into the trust and determine who will control the assets (The Trustee) and who may received benefits from the trust, The Beneficiaries
What are the benefits of a family trust?
Having property owned by a trust can remove that ownership from an individual, decreasing their individual wealth. This can be a useful tool in estate planning and in helping to protect assets from ending up in the wrong hands in the event of an unhappy relationship or where there may be other reasons to direct a person’s assets into different ownership.
Could a trust benefit me and my family?
For more information and advice about setting up a family trust please contact us for more information, or call 0800 PPTYLAW (0800 778 952) or +64 6 3705102 to speak to one of our family trust specialists.