Key Steps In Establishing An Asset Protection Programme Using A Family Trust
Objective of programme:
Endeavor to protect against:
relationship property/family protection claims
future re-introduction of estate duty or capital tax
unknown and unexpected creditors/preditors
Possible incidental benefits:
obtain tax benefits
charitable donations
Identify beneficiaries
Establish main points of Trust(s):
name of settlor(s)
names of trustee(s)
names of beneficiaries
name of Trust(s)
power of appointment
Identify assets to be transferred/purchased
Estimate likely fees and disbursements
Prepare:
Trust Deed(s)
Letter(s) of Wishes
New Wills
Enduring Powers of Attorney (if applicable)
Powers of Attorney and Deeds of Delegation
Have primary documentation signed
Interim report to client
Obtain valuation(s) of asset(s) to be transferred. For property we can obtain an updated valuation from quatable value or a current (less than six month old) government valuation or registered valuation is sufficient.
Confirm receipts of valuation
Search title(s) to any property/ies
Check trust proposal with client’s accountant
Obtain consent of mortgagees
Prepare (if applicable):
Agreements(s) for Sale and Purchase
Matrimonial Property Agreement
Bank Mortgages
Mortgage to Settlors
Loan Contract
Transfer(s)
Acknowledgement(s) of Debt
Gift Statement(s)
Advance Directives
Obtain independent advice where required for any party
Have balance documentation signed17. Forward certificate to bank
Lodge necessary documentation with IRD
Obtain IRD number(s) (if applicable)
Obtain GST registration for appropriate Trust(s)
Open Trust bank account – client (if applicable)
If applicable:
Complete Trustee Company Minutes
File company office notices
Register documents with LINZ
Register documents with Share Registry
Register with insurance companies
Notify local authority of change of ownership
Draft Opening Minute
Second interim report to client
Complete Opening Minutes and arrange Minute Book
Review financial planning advice position
Forward documents to bank
Report completion to client and accountant
All original documentation, including agreements and valuations to Trust deeds packet
Open Trust administration file and record Trust details on Trust register