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Thread ID: 135126	2013-09-28 20:36:00	Family trusts	FoxyMX (5)	PC World Chat

Post ID	Timestamp	Content	User
1354521	2013-09-28 20:36:00	Is anyone here a trustee or beneficiary of a family trust? I am considering a request to be a trustee and am just wondering how beneficiaries benefit if the settlor dies and a property remains in the trust. My understanding is that the beneficiaries don't own the property, the trust does, so at what point and how do the beneficiaries benefit if they don't live in the property or if the subsequently property is sold?	FoxyMX (5)
1354522	2013-09-28 21:00:00	It is all controlled by the Settlor or Settlors' wills.	Richard (739)
1354523	2013-09-28 22:17:00	Trustee's have certain responsibilities that can be a serious PITA. And in my opinion, under many circumstances people waste huge amounts of money setting up a trust.	Greg (193)
1354524	2013-09-28 22:42:00	True Greg. There has to be good reason for setting up a Trust, so it is best to involve your solicitor right from the start, if this is what you intend to do. Trustee tasks are not onerous, as long as an annual meeting is held, with proper recorded minutes. The hardest part is for people to realise that they no longer own any property or investments put into trust, the Trust does. So Foxy, if you have been asked to be a Trustee, this means that someone has considered you to be a person they want to be helping administer any assets they have put into a Trust. That is good news. Depending on what sort of Trust it is eg trading or non-trading, the work will consist only of attending the occasional meeting, and vetting any action taken by or on behalf of the Trust. If you decide to accept the appointment as a Trustee, make sure there is also a professional Trustee, such as a lawyer or lawyers trustee representative appointed.	Richard (739)
1354525	2013-09-29 03:26:00	Trustee's have certain responsibilities that can be a serious PITA. Could you elaborate please Greg? If you decide to accept the appointment as a Trustee, make sure there is also a professional Trustee, such as a lawyer or lawyers trustee representative appointed. For a simple non-trading trust set up mainly for protection against future possible relationship property claims what might be the consequences of not having a professional trustee appointed?	FoxyMX (5)
1354526	2013-09-29 04:17:00	The consequences could be failure to comply with all legal requirements of Trust and Trustee Law. This failure could render the trust invalid, and treated as non-complying by any future court action. Do it all properly, or not at all.	Richard (739)
1354527	2013-09-29 07:47:00	I'm happy to answer general questions Foxy with the intention of helping you and readers of this thread. Forgive me if I get bogged down in legalese and don't hesitate to re-ask a question. Trusts originated during the Crusades when a knight might be away from his family for ten years, so the law of trusts has a deep and interesting history. The knight would transfer his lands to the local bishop or neighboring baron "for the use of" his wife and children = Beneficiaries. The knight is the Settlor and the Bishop and/or Baron are the Trustees. A trust is a legal fiction because even today to the outside world, the trustees personally own the property - the Deed of Trust is a private document. So a trust is not normally visible. Trusts were validated by the Statute of Uses 1581 (Elizabeth I). A trust is very simple but on the other hand there are volumes of law books on the subject, which indicates plenty of people have argued over them.	Winston001 (3612)
1354528	2013-09-29 08:01:00	In NZ we commonly see articles about "family trusts" in magazines and discussions on talk-back radio. This gives the impression that these are a special type of trust and/or particularly important. Not so. But they are flavour of the month and mostly driven by rest-home asset testing. The reason to establish a trust is to protect property - a house, shares, investment, whatever. Most family trusts are just discretionary trusts - we insert the word family to distinguish them from testamentary trusts (under a will), protective trusts (disabled children), and others such as charitable precatory secret etc etc. In NZ most recent trusts are passive entities which own a house. The trustees do nothing year after year. Named beneficiaries (usually the Settlors) live in the house rent-free provided they pay the maintenance and outgoings. However it is wise for the Trustees to record an annual minute confirming the property is looked after and the beneficiaries continue using it.	Winston001 (3612)
1354529	2013-09-29 08:11:00	As said, a trust protects property. That is its purpose but unfortunately there can be tax benefits for some families so they and their accountants focus on that. Its understandable but IMHO tax is never a good reason to establish a trust. Others disagree. :D In the same way I do not approve of trading trusts although they are quite common. How can a trustee be prudent and protect the assets while at the same time allowing them to be risked in business? One of these days the Supreme Court is going to notice... Anyway, a trust is a very useful way of keeping property away from a relationship property claim, claims against a will, insolvency, wicked children, and good children's wicked alcoholic partners. Etc. Not bullet-proof where relationship property is involved but still protective.	Winston001 (3612)
1354530	2013-09-29 08:14:00	Could you elaborate please Greg?I have two experiences of trusts - one of my ex'es and my current g/f. The first paid close to 25 grand to set it up with all the to-and-fro'ing, plus ongoing legal costs. Trustees are required to attend, as mentioned above, at least one annual meeting. I'd hate to imagine what would happen if the trust starter pegged it... mega consultations and mega more bucks chewing into the trust fund. My current g/f paid and is paying a bleeding fortune for her trust. And in the situation of a marriage/partnership relationship breakup, the trust is worth less than the contents of an ashtray. Seriously.	Greg (193)
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