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.