Expert family trust lawyers in Christchurch - Safeguarding your wealth and future with trusted legal solutions

A Family Trust is a mechanism for holding assets where property is put into the name of certain people “Trustees” (usually you) who hold the property for the benefit of someone else (the beneficiaries, which would usually include you). The Trust is not like a company and does not have any legal existence, the Trustees are effectively the Trust. A Trust is a good way to protect and manage assets for someone who may not be able to manage them now or in the future.



The preparation of documentation for a Trust requires an experienced lawyer, if you have any questions feel free to call, email our family trust lawyers.

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Setting up a family trust

Setting up a family trust can be an effective way to protect your assets and manage your wealth. Here are the main reason to set up a family trust:



  • Creditor protection
  • Tax savings
  • Relationship property claim protection
  • Protect your children
  • Planning ahead
  • Confidentiality
  • Flexibility
  • Protection against family protection claims etc


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“We are particularly grateful for your efforts in having the Trusteeship resolved without us having to go to court”

(Client)

Trust review & annual reviews

The Trusts Act 2019 (“the Act”) came into force on 30 January 2021. The Act requires that trustees know the terms of the trust and need to provide the beneficiaries with basic trust information. The terms of trust cannot indemnify any trustee(s) against trust property for liability for any breach of trust arising from the trustee’s dishonesty, wilful misconduct, or gross negligence. A trustee’s failure to comply with their obligations under the Act puts a trustee at risk of being sued by a disgruntled beneficiary. 

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“I would like to thank you and your team for all the work you have done to for Murray and I as Trustees,”

(Client)

To prevent a claim being made against the trustees

Here are some points that the trustees should consider:


  • Mandatory trustee duties include holding and understanding all trust documentation, including any expressions of the settlor’s wishes.
  • Beneficiaries must be notified unless certain criteria are met.
  • Default duties include investing prudently, not exercising trustees power for own benefit, and acting impartially between all beneficiaries unless strict guidance has been given by the settlors.


The new trust laws hold trustees accountable and intend for trusts to be operated more transparently, that said, if not properly managed a trust's validity can be challenged. It is recommended that a trust holds annual meetings to mitigate the risk of their trust being challenged. If you require a trust review or need assistance with facilitating your annual meetings, please feel free to get in touch with one of our family trust lawyers today.


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Family Trust Law FAQs

Got a question? Our team of experienced family trust lawyers based in Christchurch are here to help.

  • How does setting up a family trust help with creditor protection?

    Obviously if the assets are beneficially owned by somebody else, then notwithstanding they may legally be in your name as trustee they can be safe from your creditors (subject to some exceptions). 

  • Can setting up a family trust help with tax savings?

    Income earned by a Trust can be distributed to family members who may be on lower tax rates.

  • How setting up a family trust helps with relationship property claims

    Subject to Court Order, if the assets have been effectively transferred into a Family Trust they no longer belong to you and cannot as such be claimed by your life partner as Relationship Property. This can be a useful way of helping ensure that your assets are protected from claims by any future partners. Please note, Trusts are not as robust as they once were and can be subject to claims against their validity. 

  • How does setting up a family trust protect your children?

    By putting your assets into Trust you are a long way towards protecting any children you may have against the danger that:


    • Half of any inheritance they may have otherwise have received from you, being claimed by an ex partner from any failed relationship they may be unfortunate enough to suffer in the future.
    • One of you dies, the other gets into a new relationship that:
    • Fails and leaves half of his or her wealth (i.e. your children’s inheritance) to the ex-relationship partner.
    • Produces more children with the result that again your children’s inheritance is reduced by virtue of now being spread over more children than just those produced by the two of you.

  • How does setting up a family trust help with planning ahead?

    A Trust can be used to arrange your affairs or assets in much the same way as people draft Wills or form Companies. It allows for the transfer of family wealth from one generation to another in a planned but flexible manner. 

  • Why setting up a family trust keeps things flexible

    A Trust can last over 125 years or even longer and it is difficult to forecast the needs of beneficiaries over such a long period of time. A discretionary Family Trust provides flexibility to cater for different beneficiaries needs at different times in their lives.

  • How setting up a family trust protects against family protection claims etc

    If your property is all held by a Trust, a life partner or child who has been deliberately excluded cannot challenge the provisions of a Trust after your death in the same way a Will can be challenged.

Meet our family trust lawyers

David Houston | Director | Weston Ward & Lascelles
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Jim Sutherland | Trust Manager | Weston Ward & Lascelles