Protecting your hard earn't assets

New Zealand is somewhat unique in that it has chosen to do away with estate, or inheritance tax (along with some other forms of taxation). This is a big relief for any New Zealanders looking to pass along property or other assets to loved ones. However, a lack of estate tax doesn't necessarily mean that your beneficiaries are free and clear. Because there is no estate tax, you might think you don’t need to create some form of legal asset protection. Unfortunately, just because the government isn't liable to come after your loved ones for money doesn't preclude anyone else from trying to gain access to your assets.

Are you a business owner or a company director?

If you have a business that is heavily in debt or fails, for example, you will probably end up owing some money to creditors and other professional interests linked to your business. If you haven't bothered to set up appropriate protections, such as a corporate entity of some sort to shield you, your personal assets could be on the line as creditors seek repayment of debts through appropriate legal channels (i.e. lawsuits). In other words, those claiming business debts could come after your personal assets. The same is true of personal debts. In addition, other claimants, such as ex-spouses, children, and other family members or friends could come out of the woodwork after your death to try to claim property or other assets.

Having your wishes known

The natural solution is to set up legal structures to protect your assets and make your wishes known. It is not uncommon to start with a last will and testament, but you might find that family trusts are more suitable for your needs, especially if you could one day hold a lot of personal or professional debt. No doubt you plan to pay debts off over time. If the worst should happen and you perish unexpectedly, however, you want trusts in place to save your family from a protracted probate process, public knowledge of the assets in your estate, and the possibility of others laying claim to assets.

Protecting your main asset - your family home

This is especially important where your main asset is concerned. Ensuring that a family home is passed along to your loved ones is most easily accomplished with a family home trust. In New Zealand, this type of legal structure is easy and affordable to create. All you have to do is find a reputable website managed by experienced professionals like ours that can set up your home trust in as little as 15 minutes at a price every homeowner can afford. Although New Zealand has abolished estate tax, you still need to take steps to ensure that your loved ones receive all they're due in the event of your death. Family trusts are the best solution.

So why not learn more and register with TrustUs today.

After all, it's in your hands.