Setting up a family trust fund may sound difficult and complicated, but it’s actually quite easy to understand. It allows you to arrange how your assets will go to your beneficiaries upon your death or incapacitation, but it’s different from a will. Here are the main elements needed to put up your trust fund:
The Trustees – Unlike a will, a trust fund requires trustees to hold and administer the distribution of your assets according to your instructions. The advantage of this setup is your assets are no longer subject to income tax and even other related taxes because they are no longer “yours.” Typically, you should appoint your lawyer or accountant to be your independent trustee, but you can also be one of the existing trustees.
The Trust Deed – This document sets up your trust and records all your requirements. It also states the trustees, beneficiaries and all the duties and responsibilities involved in their specified roles. Usually a lengthy legal manuscript, the trust deed would need to involve all management and administration details since it would need to qualify for tax requirements.
Your Beneficiaries – These are the people who will benefit from your trust fund. Your beneficiaries are “discretionary,” which means the trustees can decide who would be the most deserving receiver of the said assets. As this is family trust, accountingnorth.co.nz added that all your beneficiaries would include your present family members — even future children and grandchildren.
The Assets – You don’t need to have extensive possessions in Auckland to create your family trust fund. Moreover, you can add new acquisitions to the trust fund as time passes by. If you plan to make changes, it’s relatively easy to adjust, amend, and add details. It won’t take too long to process either.
Last but not the least, you will be the settlor. That is if you’ve finally decided to have that family trust fund. Remember to contact reputable and proficient accounting companies and legal firms for proper processing.
