Trust formation & maintenance
A New Zealand Family Trust Deed suitable for use if you wish to setup a Trust on your own.
What is a Family Trust?
A family trust is a specific type of trust, and the same considerations that apply to trusts in general apply to family trusts. The beneficiaries of a family trust are usually spouses, children and grandchildren.
You will need to decide the assets to be put into the trust, and to place a value on them. The ownership of the assets is then transferred to the trust and the trust incurs a debt to you, the settlor. This debt can then later be "forgiven".
A family trust arrangement might typically work like this:
- The settlor makes an opening cash gift.
- The settlor sells assets to the trust, with the trust incurring a debt to the settlor for the purchase price.
- The settlor forgives this debt in under a "gifting programme".
- The trust assets (for example, the family home) are leased to the settlor, who pays rent for them to the trust.
This Trust Deed document allows you to manage your own legal matters in a cost effective manner. Guideline & notes are provided.