NZ Trusts are excellent vehicles for estate planning. This is because it allows you to operate your estate through continuity of asset management and take full control of your wealth while avoiding the taxes related with death and estates. Let this article help you decide why a family trust is one of your best options in estate planning.
Why do you need to put your assets in a family trust? There are several reasons why moving your major assets to a family trust is worthwhile. One of the common reasons why this move is done is to have full control of the asset management and avoid other parties to claim over the family assets. Your children's former partners might have matrimonial claim over assets with divorce. With a Trust, however, the assets are quarantined from matrimonial claims. This makes the Trust a superior vehicle for asset protection.
Another reason why an NZ Trust is very essential in estate planning is that it avoids tax disposal issues usually associated with death and estates. Let us have an example when a certain real estate property is disposed of from an estate through your Will. If this property causes depreciation recovery, it will result in tax liability to the estate. This could have been tax sheltered if the property was moved to an NZ Trust. Utilizing Trust structures can avoid tax issues normally associated with ordinary estates.
A family trust can hold and purchase various asset types like your family home, real estate properties, shares, life insurances, and even heirloom jewelry. Just remember this rule: only move assets with appreciating value to the Trust. Assets with depreciating value like cars and appliances should never be included.
In ending, the NZ Trust is your best choice for estate planning. Consult your legal and financial experts on how to set up one.
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