A trust is a legal arrangement whereby assets areheld in the trust, and administered by trustees for the benefit of beneficiaries.

​

Trusts are not legal entities. Legal ownership of assets are held in the names of the trustees. Below are some of the common uses and benefits of using a trust:

​

• Safeguarding property for minors, spouses or sick/handicapped dependants

• Protecting assets against claims from creditors, relationship breakdowns or from other family members

• Offering the ability to withhold assets from irresponsible children or grandchildren until they are older and more mature

​

The Property Relationships Act 1976 has extended the property rights of married couples, to de facto couples, thereby expanding the pool of possible claimants. The potential risk is where a de facto relationship breaks up, your partner can claim 50% of relationship property, or if your child inherits, this can become relationship property in their relationship, and thus subject to claims by their partner in the event of a marriage/partnership break up. 

 

Trusts can be a  useful asset and Estate Planning tool in this situation.

​

It should be noted that Trusts are not suitable for everyone. It is best to speak to a specialist for advice suited to your particular needs.