As they say, prevention tends to be better than the cure, so let’s take a look at one of the most pragmatic preventative legal measures you can take to safeguard your future – robust asset protection.
The feedback’s continuing to roll in around our family law specialist, Gillian Stuart, and her series of interesting legal facts that’s been running in The Messenger. Earlier in the year, Off the Record ran Gillian’s first 10 facts. And now, by popular demand, we’re delighted to bring you Numbers 11 to 15.
All legal eyes are glued to a landmark case that’s set down to be heard in the Supreme Court early next month – and its significance is such that anyone with a trust would do well to take a keen interest in, too.
As many New Zealanders know, a family trust is a legal way to hold and protect your assets for you and your family for the future. The assets (properties/investments) will be owned by the trust rather than by a person, and they are managed by trustees. The trustees are usually family members but could be a professional person like a lawyer or accountant.
We advisors, who specialise in trusts, had felt for some time the days of assets being cleanly ring-fenced and largely taken out of the equation for rest home subsidy assessments were closing.
Some years ago, you transferred your farm to your family trust. The trust didn’t have any money to pay you for it, so you loaned the money to the trust. You have been forgiving $27,000 of the loan each year to avoid gift duty, but now that gift duty has been abolished, you are wondering whether you should forgive the whole of the remaining debt in one go?
