A Family Trust is generally put in place to provide for the following:
- Provision for children and/or grandchildren (including future asset protection from
- creditors or marriage breakdown of children or grandchildren).
- Provision for beneficiary who is unable to manage his/her/their own affairs.
- Protection of assets from future capital gain taxes, including potential estate duty.
- Vehicle for retirement savings.
- Vehicle for General Investment.
- Potential for income splitting by using lower marginal tax rates.
- Protection of assets from creditors.
- Eligibility for rest home subsidy or other means tested benefits.
- Protection of assets from marriage breakdown.
Family Trusts and the benefits
It is important when establishing Family Trusts that you consider fully all the implications. Trusts are a long term commitment and effectively managed and utilised offer protection for family wealth.
