{"id":202490,"date":"2021-02-16T17:48:08","date_gmt":"2021-02-16T04:48:08","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=202490"},"modified":"2021-02-18T14:17:15","modified_gmt":"2021-02-18T01:17:15","slug":"family-trust-protect-assets","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/family-trust-protect-assets\/","title":{"rendered":"Can a NZ Family Trust Protect My Assets?"},"content":{"rendered":"

Starting a new business<\/a> can be a risky venture. It can be devastating if something goes wrong, and the business fails. If you take appropriate steps to protect your assets beforehand, you can somewhat reduce the fallout. You can protect your assets by setting up a family trust<\/a>. This is a common legal practice in New Zealand, where you transfer your assets to a trust and do not own them anymore. In most circumstances, this means that creditors cannot claim these assets as part of debt proceedings. Trusts are complex, so you should make sure you know your obligations when setting one up. This article will explain how a family trust protects your assets and other aspects of these trusts.<\/span><\/p>\n

What Is a Family Trust?<\/span><\/h2>\n

There are three key parties in a family trust. These are the:<\/span><\/p>\n\n\n\n\n\n
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Settlor<\/span><\/p>\n<\/td>\n

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The individual (or company) that sets up the trust.<\/span><\/p>\n<\/td>\n<\/tr>\n

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Trustee(s)<\/span><\/p>\n<\/td>\n

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The individual (or company) that manages and maintains the assets held in the trust, as according to the trust deed. The settlor (or someone else specified by the trust deed) is the one who appoints them.<\/span><\/p>\n<\/td>\n<\/tr>\n

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Beneficiaries<\/span><\/p>\n<\/td>\n

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The individual (or company) that manages and maintains the assets held in the trust, as according to the trust deed. The settlor (or someone else specified by the trust deed) is the one who appoints them.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The settlor gives their assets to the trustee to hold and maintain for the beneficiaries\u2019 benefit. The trust is the legal relationship created in this process. The trust deed details this, and the trustees follow what the trust deed says. Trustees also have duties that correspond to their power, such as:<\/span><\/p>\n