Family Trust Law

Not necessarily. With the Trustee tax rate now aligned to 39% and increased compliance costs under the Trusts Act 2019, the tax benefits of a Trust have diminished for many. However, Trusts remain a powerful tool for asset protection—specifically shielding assets from business creditors, relationship property claims, or for supporting vulnerable family members. We can conduct a "Trust Review" to determine if yours is still fit for purpose.

Under the Trusts Act 2019, Trustees have "Mandatory Duties" that cannot be excluded. You must know the terms of the Trust, act honestly and in good faith, and act for the benefit of the beneficiaries. You also have "Default Duties," such as investing prudently and avoiding conflicts of interest, unless the Trust Deed says otherwise. It is a significant legal responsibility, not just a "form-filling" exercise.

The cost varies depending on the assets held. If your Trust holds real estate, formal conveyancing is required to transfer the property title back to you, which incurs standard legal and registration fees. If the Trust holds only cash or shares, the process is simpler. We can provide a clear, fixed estimate for the Deed of Distribution and asset transfers after a quick initial assessment.

Yes, but it is most effective when set up before the relationship begins. If you transfer assets into a Trust during a relationship, they may still be open to a claim under the Property (Relationships) Act. For the best protection, we often recommend combining your Family Trust with a Contracting Out Agreement (Section 21 Agreement) to ensure your separate assets remain yours.