The Family Trust is a trust that you may create to secure your assets for the benefit of your family members. If you operate a business and want to safeguard your personal assets from all business risks, relationship property claims, and managing assets for someone who is unable to handle their own affairs, you may want to set up a family trust. A trust deed is required for the family trust, and it lasts for 80 years when the trust has to finish.
Setting up a Trust
The settlor is the person who creates the trust and transfers his or her assets to it. There can be several settlors.
The trustees can be two or more appointed by the settlor/s to manage the trust’s assets. The Settlor can be one of the trustees. The trust can also have an independent trustee. Trustees administer the trust for the benefit of the beneficiaries.
The beneficiaries are the people who benefit from the trust’s assets. Under a Family trust it normally includes every member of the family. The beneficiaries could be discretionary and final or ultimate beneficiaries. The settlor/s can also be a beneficiary, but not the sole beneficiary.
The trust deed is the document that will contain the names of the settlor/s; the trustees and the beneficiaries and sets out the relevant parties’ rights and obligations.
The trust must have assets. A family trust cannot be set up without assets.
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