What is a Family Trust ? - In summary

A Family Trust is a written agreement ( the Deed of Trust) between you and those whom you trust (the Trustees). You appoint them to look after your Assets and other personal affairs for yourself,  your family and possibly others, now and in the future.

You (the Settlor) , set up a Family Trust with your lawyer and then transfer assets to  that Trust. You transfer  those assets to the Trustees of your Trust. They must  hold those  assets in Trust for you and other Beneficiaries  who are named in the Deed of Trust. You transfer by means of a Sale Agreement for a set value of the Asset.

Discretionary Trusts are those Trusts where the entitlements of Beneficiaries are not fixed so that the Trustees have a wide discretion to allocate income and/or capital during the running period of that Trust. They provide the greatest flexibility for tax and asset planning. Don't be alarmed however, The recorded Wishes, Resolutions, Wills,  Letters of Intent and  also the Deed of Trust will direct and guide the  Trustees on how to run your Family Trust.  Most important of all, you will be a Trustee and therefore run the trust yourself. You will probably also be a Beneficiary, and this means that you can ensure that you will also benefit from your Family Trust, during your lifetime.

Personal Directions are set out in Letters of Intent, and at our Sanctuary Trustlaw office also recorded on DVD. Together with other instructions it ensures that other trustees chosen by you will follow your wishes. It is often not necessary to have other Trustees,  but when you get old, feeble or  incapacitated it is wise to have someone else who can run the Trust. Some people may be restricted from running a Family Trust, such as Politicians, Bankrupts, those in prison or when religious matters are of importance to the Settlor. A Life Legacy Letter, which conveys the voice of the heart and transmits teachings  to future generations can complete our Trust Package.

At Sanctuary TrustLaw we ensure the Trustees meet or interact a few times a year . The writer personally records those interactions in the yearly Minute Book , which is the historical document for every Trust  at the yearly Review meetings.

Trusts are useful for protecting the Assets from Creditors, preventing distribution deadlocks when family rifts occur, securing the future of the whole family by giving effective protection of the Assets whilst enjoying the Trust income as before, and often at more advantageous tax rates. Trusts can therefore be for your own benefit  or for other family members, and also for others that are close to you or to further your charitable aims.

A Family Trust is a holding place for your  Income and Assets:

Family home or rental properties as investments;

Cash Deposits and Investment Portfolios;

Personal Shareholdings in partnerships or companies;

Loans that are owing to you;

Valuable  Assets such as vintage Cars and Collections  such as Coins;

Royalties or Intellectual Rights which are yours or held in your firm;

Financial  Arrangements to care for persons designated by you.                                                      

 Business Arrangement that trustees must adhere to  complete your life"s work.

Directions or Wishes  of a religious or charitable nature.