Trusts - Socities

In New Zealand law, there are mainly two types of trusts: 
1. Private 
2. Charitable Further division of types of Private trusts: 3. Express or declared trust4. Implied or presumed trusts5. Constructive Trsuts6. Family Trusts

Trusts - Socities

FAMILY TRUST

Family trust is one of the most flexible and rapidly developing institutions of modern times.

If established and monitored with care, trusts may serve all the various uses that they are intended to serve in familya nd commercial contexts.

Family Trust is mainly formed to achieve asset and tax planning objectives.

A property vested in family trust cannot be sued for debts of any individual. But one thing must be remembered that because the settlors have legally transferred the property that they have settled on trust-they are no longer the owners of the property and they no longer have direct control over it.

They may sometimes be dependent upon  the decisions of relatives, accountants, solicitors etc. There will also be a degree of  inconvenience-the moreso if the trust owns income-earning assets and has to file tax returns and, of course there is the relatively minor factor of cost.

It generally costs around $3000 to set up a complete set of family trust arrangements.


CHARITABLE TRUSTS

Charitable trust is a non-profit making social organisation which tends to benefit poor, education, social welfare and sports.


Pl. note that this is not a legal advice and it is advisable to seek independent legal advice before acting on the above information.

Arunjeev Singh Barrister is able to give free legal advice on the matter.