Can a family trust include non family members?
A discretionary trust can have beneficiaries other than members from the same family. A friend could be included as a beneficiary of the trust for a variety of reason such as wanting the friend to benefit now or wanting the ability to want to distribute to them at some point in the future potentially.
As for a trust, if a party is not within family group, you cannot bring them into the trust with you.
What is the purpose of a family trust account?
A family trust is a great way to hold assets, such as physical property or shares in a company. This is because it allows you to safely hold your assets from creditors and to distribute your dividends to your family members for more favourable tax outcomes.
How does a family trust account work?
One of the key benefits of a family trust is that the trustee can distribute income earned by the trust [from the trust property] in any way they see fit, provided distributions are made to people who qualify as beneficiaries. The beneficiaries then pay the tax on distributions made to them.
Is Family trust a good idea?
Family trusts can be beneficial for protecting vulnerable beneficiaries who may make unwise spending decisions if they controlled assets in their own name. A spendthrift child, or a child with a gambling addiction can have access to income but no access to a large capital sum that could be quickly spent.
Can you touch a trust in a divorce?
Marital property is property that was earned, obtained, or received during the marriage. Exceptions include gifts or personal injury settlements or awards. If marital property is placed in an irrevocable trust, that trust cannot be changed and the assets in it cannot be removed and divided in the divorce.
What happens when assets are in a family trust?
When our assets are in a family trust we no longer have legal ownership of them – the assets are owned by the trustees, for the benefit of our family members. People usually set up a family trust to get some benefit from no longer personally owning an asset. A family trust may be useful to:
Who is the owner of a family trust?
A family trust is a legally binding document that covers an individual’s assets during one’s lifetime and specifies the terms of dispersing those assets after one’s death or incapacity. The person establishing the trust—generally referred to as the grantor—transfers all of his/her assets so that the trust itself is the owner, not the individual.
Is it easy to set up a family trust?
A family trust is a relatively easy document to prepare and account for, particularly with the help of an estate planning attorney. Transferring asset ownership to the trust is an easy task. The ability to amend and adjust the terms at any time makes it a very versatile vehicle.
Can a trust be an asset of a marriage?
In most cases, trust assets of a purely discretionary trust constitute a “mere expectancy”. Therefore, they are not a financial resource. This is given the discretionary nature of a family trust. Is Dr Spry’s Family Trust an asset of his marriage?
