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The best reason to choose a family trust as well as a will is your family. Should anything happen to you, having your assets held and handled by a family trust is much easier on your family than a traditional will. Why?

No probate

One of the best reasons for establishing a family trust is avoiding probate issues. If your assets and property are going to be distributed according to your will, probate is necessary. Probate can be a lengthy process by which a judge examines your will and determines its validity. A family trust allows your loved ones to bypass this process and gain access to the assets quickly. Also, your family trust avoids costly fees, as well as the long wait. The last thing you want to put your family through at such a hard time.

No contest

A proper family trust offers much better protection against anyone contesting a will or presenting an unwanted claim. Unscrupulous types can come out of the woodwork to contest the distribution of assets, and a family trust is the best protection against this happening.

Higher education

When a child's education is at stake, you want the best guarantee that any assets you intend to cover tuition fees and other higher education costs for family members will actually be used for that purpose. Only a family trust allows you to specify in detail exactly how your assets are to be used. For example, you can specify that each child's full tuition and university expenses should be paid from the family trust.

Relationship property

In New Zealand, there is a 50-50 presumption of ownership when assets are divided after a relationship ends. But any assets that were in the family trust before that relationship started will remain in the trust and cannot be claimed by a former spouse, or by anyone else for that matter. By the same token, transferring inter-generational wealth through a family trust guarantees that the assets actually go to your family members - and not their partners.

Asset control

A personal will would be an appropriate way to divide up your assets after your demise - if you were living in feudal times! Nowadays, you really have no control over assets bequeathed in a written will, so your last wishes could die as well. A family trust, on the other hand, puts control of the trust in the hands of your hand-picked trustees. After you're gone, they will act as your eyes and ears and carry on your legacy.

To learn more about getting yourself sorted why not register with TrustUs today.

Its in your hands.