Coretex will provide you, and your family trust with advice and administration services relating to the creation, maintenance, and use of a trust.

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What is a Trust?

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A trust is a legal arrangement established by a settlor in a document (the trust deed), that contains an obligation whereby someone (the trustees), has control of assets for the benefit of others, beneficiaries.

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Why would someone want a Trust?

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Trusts are still the ideal vehicle for Estate Planning purposes. Estate Planning is all about protection from third parties and tax optimisation.

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Estate planning is for the long term; therefore flexibility is required in case of future legislation changes. You will need to consider the provisions under the Insolvency Act, Property Law Act and Property Relationships Act regarding voidable transactions.

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General Uses of Trusts

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• Asset Protection

• Creditor Protection

• Income Support

• Income Tax Purposes

• Specific Purposes such as Education or Charity

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How do I Transfer Assets to a Trust?

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A Trust is usually established with a nominal amount and then all other assets or monies are either gifted or loaned to the Trust. Coretex are happy to advise on your options for establishing, maintaining and moving assets into a trust.

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Operation and Running of the Trust

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The Settlor has, in most forms of Trust Deeds, the ultimate power in the Trust. The Settlor can appoint and replace Trustees. The Trustees manage the day-to-day operation of the Trust business and its assets, and make decisions regarding distributions to the beneficiaries. It is usual to have an independent third party Trustee.

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Administration and Accounting

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For non-income producing assets, there is no accounting required and no set of accounts, as a tax return need not be filed.

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For the income producing assets, a tax return would be filed by the trust, under its own IRD number, recording what income was earned and what, amount if any, was distributed to the beneficiaries. Of course any income distributed to beneficiaries will be taxed at their own tax rates, with the exception of minor beneficiaries.

In addition to setting up a trust, you should also consider wills, enduring powers of attorney, and other related matters. If required, we can also assist you by introducing experienced solicitors with whom we work, and are a trusted extension of our team.

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Conclusion

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Coretex have extensive experience with the setup, maintenance, and administration of trusts.

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We may raise this as an option with you during our discussions on other matters.