Trusts and Estate Planning

Estate planning was, some years ago, thought of as making a will. With our laws and life becoming more complex many people now consider a Family Trust an important part of estate planning.

We are commonly asked do we need a Family Trust. The most common reasons for forming a Trust are detailed below however your specific requirements should be discussed with us before a properly informed decision can be made.

The most common reasons for forming a Family Trust are:

1. Protection of family assets from financial problem, this is important for persons in business or who are taking financial risks by providing guarantees or embarking on property development etc.

2. Protecting family assets for the next generation. A Trust helps to ensure that the asset is protected for your family and not lost after your death. This is especially relevant for those in second relationships, to protect separate children etc.

3. Protection of assets from Relationship Property claims. Combined with a 'contracting out agreement' under section 21 (Relationships) Act 1976, a Trust provides adequate protection.

4. Income spreading is often attractive for accountants. This can reduce income tax, however you would need to discuss this with the appropriate accountant.

4. Protection of family assets from rest home fees or long term hospital costs.

Simon Dominick has specialised in Trusts and regularly attends Trust seminars to ensure that he is up to date with the current developments. If you wish to enquire about a Trust contact Simon Dominick, Dennis McBrearty or Richard Ayton.

While a Trust is important, you should not forget your Will and ensure that you have appropriate Powers of Attorney in place in the event of incapacity. If you need to make a new Will, update your Will or finalise Powers of Attorney, please contact Simon Dominick, Richard Ayton or Dennis McBrearty.