News and views

As many New Zealanders know, a family trust is a legal way to hold and protect your assets for you and your family for the future. The assets (properties/investments) will be owned by the trust rather than by a person, and they are managed by trustees. The trustees are usually family members but could be a professional person like a lawyer or accountant.

​Have you ever considered that one day you might not be able to make decisions about business or family matters due to incapacitation? It pays to be prepared for a time when you might not understand the nature and consequences of decisions and/or the ability to communicate these decisions.

We advisors, who specialise in trusts, had felt for some time the days of assets being cleanly ring-fenced and largely taken out of the equation for rest home subsidy assessments were closing.

Where there is a (last) Will (and testament), there is a way. Without this most crucial of documents, unfortunately, not only is there a no absolutely clear way for settling an Estate, things can get downright wayward.

Some years ago, you transferred your farm to your family trust. The trust didn’t have any money to pay you for it, so you loaned the money to the trust. You have been forgiving $27,000 of the loan each year to avoid gift duty, but now that gift duty has been abolished, you are wondering whether you should forgive the whole of the remaining debt in one go?