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Family Trusts


There are a number of very sound reasons.

  • If you're in business, it offers protection against creditors. It can also offer protection against those who sue you.
  • Your family home and other personal assets can be protected from an aggrieved ex-partner.
  • When the government assesses the level of rest home care subsidies, it will consider your personal assets (of which you don't have any - your assets are now in trust). Future governments may bring in asset testing to determine the level of government superannuation entitlement.
  • It can allow a more orderly approach to passing assets through the family. For example, keeping the family bach safely in the hands of the family.
  • If incidental to the main purpose(s) of the trust, there may be tax advantages. For example, investment income could be distributed to the partner on the lower tax rate.