Trust Law

At Pier Law we have extensive knowledge and experience in helping individuals, families, and business owners establish and run trusts. Our expertise in Trust Law will give you peace of mind that your assets are fully protected.

What is a Trust?

A trust is a separate legal entity documented by a Trust Deed involving multiple parties. They are a great tool for general asset protection and estate planning with benefits including income tax savings, reductions and avoidance of certain surcharges and taxes, and the ability to provide education for children or protect assets for future use. Trusts should be specifically arranged to suit the circumstances of the settlor and his or her family, and should be flexible and adaptable when circumstances change.

What is Involved in a Trust?

Trusts involve three parties:

  • A settlor, who provides money or other assets to be held
  • The trustees who take charge of the trust property and administer them in accordance with the Trust Deed and the Trustee Act (1956)
  • The beneficiaries who receive income or capital based on the trustees' decisions

Settlors and their spouses are often also trustees, but it is advantageous to have a third, perhaps a professional advisor or a family friend. This overcomes problems which may arise at the death of the settler if a spouse is left as the sole trustee, since a sole trustee cannot allocate income as capital to themselves.

The ideal assets to hold in a trust are those of a permanent nature, such as land and buildings, publicly listed company shares, or fixed term deposits. These assets are likely to grow in value and generate income for the trust. Settlors often include their own home as a Trust Property, but this should not be an automatic settlement as problems can arise if the Trust Deed is structured incorrectly.

For more specific information on trusts, please contact us.

Why You Should Consider Trusts?

Trusts are very useful tools – the following is by no means an exhaustive list of some of the benefits:

  • Asset protection from creditors and the State
  • Income tax savings from ability to split income
  • Avoidance of superannuation surcharge
  • Protection from relationship property claims
  • Providing for education of children
  • Charitable donations made tax deductable
  • Estate planning during one's lifetime

Useful Information and Guides

Download and read our guide on The Role of Family Trusts.

Enlist Our Services

If you are interested in more information or advice on setting up a trust, please contact one of our friendly staff at the Kaiapoi or New Brighton offices to arrange an appointment.