Do you have to be rich to have a family trust?

14 March 2023

When you think of 'family trust', you imagine wealthy people with fancy boats, helipads, and other luxurious things. You also think of family fights, power struggles, and the dislike for the family member who is seen as different. Family trusts are a good way to protect and share wealth while you are alive and after you die. They can help with taxes and are not just for people with a lot of money.


Depending on your financial situation, you can set up a family trust to manage assets such as property, investments, and cash. This helps protect your family's assets from creditors. It also ensures that they are managed well. Additionally, it ensures that they are passed on to the next generation in an organized manner.


Setting up a trust is a good way to safeguard your family's wealth, but some believe it's only for the wealthy. This isn’t the case.


What is a family trust?

A family trust is a fiduciary duty imposed on trustees who hold trust property on behalf of beneficiaries. A trust is formed when assets are transferred to trustees. The trustees are responsible for managing the trust and following the directions of the creator. Usually one of these directions is to make payments from the trust to named beneficiaries.


It is imperative you seek legal advice before setting up a trust. It’s a precise process requiring careful drafting and clarification. Indeed, if you have any involvement with a trust, it is advisable to seek specialist family trust advice. The new Trusts Act exposes Trustees to be held personally liable for serious misconduct and/or not acting in good faith. 


Person signing a Family Trust document

When is a family trust a good idea?

Should the average person consider a family trust, or is it primarily for individuals with significant assets or complex financial situations?


Do you:


  • Own a business?
  • Have children that are needing help get onto the property ladder?
  • Have a new relationship?
  • Have a vulnerable family member that cannot manage their finances?


If you answered yes to any of the above, it may be worth setting up a family trust. Trusts protect the settlor's assets from creditors, reducing the risk of losing the home if the business fails. Family trusts can protect assets in failed relationships, marriages, or civil unions, but their strength has diminished.


Aside from protecting assets, trusts are also a valuable tool to financially protect vulnerable loved ones:


  • To provide long-term financial support to people who can’t manage money.
  • To provide for under-18s who are not able to manage their finances.
  • To manage funds for people who lack mental capacity.


If any of these points have hit home and made you reassess whether a Will is enough to protect and distribute your assets, a family trust may be the best solution. Consult a trusted lawyer to see if a family trust is right for your situation.


Weston Ward and Lascelles family trust lawyers Christchurch team have years of experience in dealing with all aspects of estate planning. Our team offers legal services in Christchurch and throughout New Zealand, including wills, probate, family trusts, tax planning, and asset management. Contact us today or call 03 379 1740 for a free no-obligation chat.

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10 Reasons you should have a family trust

by Simon Mullinger • 4 November 2025
Family trusts are misunderstood. They masquerade as financial planning vehicles exclusively for the fabulously rich, however, they are just as relevant for everyday working people. Weston Ward and Lascelles’ family trust lawyers in Christchurch advise a diverse range of people in ways to protect their family’s financial future. Whether you're a business owner, property investor, or simply someone who wants to ensure your loved ones are protected, understanding the advantages of a family trust is essential. Afterall, a family trust is one of the most powerful legal structures available providing families with peace of mind for generations to come. Here are ten reasons why you should consider establishing one: 1. To keep assets in the family This is the most common reason why people set up a family trust: to pass on family assets to the next generation. Certain assets such as a holiday home or farm, hold great sentimental value that goes beyond monetary value, and a New Zealand property trust protects these assets. Under a trust structure, after your death the asset remains in the family as it is owned by the trust entity. Without a trust in place, there are typically two options: If you bequeath the property in your Will, it may need to be sold to divide and share proceeds among beneficiaries. If you take the fractured ownership route, the asset is at risk of becoming unworkable in the future should relationships breakdown.