Do I need to put my home into a trust?

[donthatetheplayer]

What attack on your assets has your trust endured ?

None. Hopefully it will remain that way. But if there was an attack I have faith it will be effective.

[speights boy]

"My insurance policy is the best"
"How straightforward was your last claim?"
"I haven't had to claim yet"
"Hmmmm....I see"

[propertybuyingNZ]

DHTP: you could not have summarized the trust better than this, especially the last bit is important (inheritance, spouse benefits, etc)

My view is that you can not be a serious investor/entrepreneur or even "just" a family man if you do not put emphasis on protecting your assets for the benefit of your successors.

[donthatetheplayer]

"My insurance policy is the best"
"How straightforward was your last claim?"
"I haven't had to claim yet"
"Hmmmm....I see"

Ever the pessimist SB.

And for the record I just put an insurance claim in - very good result for me and the new bathroom looks good thanks. Last claim they did a great job on the replacement fence too.

Have some faith good man.

[Bluecoat]

I am about o put my own home and shares of 2 debt free houses in LTC in a trust.

Apart from the above , does anyone else see a valid reason?. With both of us in workforce for 30 years and me continuing , I thought I could pay family some discretionary income as I am 80 per cent LTC shareholder.

So is it common practice then to transfer the properties to the TRust as they become debt free.?
I have received conflicting advise in that I need to transfer shares of LTC to discretionary trust and form another LTC for negative geared properties. So I can distribute income to non working spouse and offset losses to new LTC as the main earner.
Can anyone see any pros and cons in implementing this structure?

[Maccachic]

There are a lot of other benefits with trusts. One I really like is that it protects assets I want my children to have from their spouses. With de-facto relationship rules the way they are I don't want my kids boyfriend or girlfriend of one year being entitled to half of what I've left to my kids. My trust ensures these assets are protected.

Also, if I depart early I don't want my wife burdened with trying to work out what to do with our assets. It's not an area she understands or that she is good with. I just want her to enjoy her life and raise the kids well whilst benefiting from the assets we have built up. The trust sets out everything so she won't have to worry about it and so any possible future partner she may have can't get at it.

Seems a few incorrect ideas here - I don't know a lot about trusts but from what I have heard. Inheritance is already considered separate property provided it is kept that way - does your trust make any difference to this (mixing separate property)? A 1 year relationship generally isn't accept as a relationship similar to marriage unless they have meet other requirement's.

Also if a partner is living in your house with your wife are they def not entitled to what could be relationship property?

[donthatetheplayer]

Seems a few incorrect ideas here - I don't know a lot about trusts but from what I have heard. Inheritance is already considered separate property provided it is kept that way - does your trust make any difference to this (mixing separate property)? A 1 year relationship generally isn't accept as a relationship similar to marriage unless they have meet other requirement's.

Just going off advice provided by my trust lawyer. They suggested this was a genuine risk. Of course, there are many different scenarios so it's not black and white.

Also if a partner is living in your house with your wife are they def not entitled to what could be relationship property?

Not sure if I understand your question. But if you are asking if my partner's hypothetical future partner should be entitled to a share in the wealth I have created, my view is a resounding NO! I have built that up for me, my partner and our children. Not a hypothetical future partner.

[Maccachic]

Just going off advice provided by my trust lawyer. They suggested this was a genuine risk. Of course, there are many different scenarios so it's not black and white.



Not sure if I understand your question. But if you are asking if my partner's hypothetical future partner should be entitled to a share in the wealth I have created, my view is a resounding NO! I have built that up for me, my partner and our children. Not a hypothetical future partner.

Im not asking if you think they are entitled it but if they are living in and contributing to the house is it actually protected?

[donthatetheplayer]

Im not asking if you think they are entitled it but if they are living in and contributing to the house is it actually protected?

Yes. That's the point of the trust!

[Winston001]

Unfortunately the answer is...maybe.

Consider this. Donthatetheplayer's widow is consoled in her grief by a handsome chap from down the road and they settle down for 20 years together. Handsome Harry paints the house, does landscaping, adds a sleepout and pays for some of this himself.

The widow dies and Harry makes a relationship property claim. He may get nothing but with a 20yr relationship the odds are strongly in his favour. Not 50/50 but something.

[Maccachic]

Unfortunately the answer is...maybe.

Consider this. Donthatetheplayer's widow is consoled in her grief by a handsome chap from down the road and they settle down for 20 years together. Handsome Harry paints the house, does landscaping, adds a sleepout and pays for some of this himself.

The widow dies and Harry makes a relationship property claim. He may get nothing but with a 20yr relationship the odds are strongly in his favour. Not 50/50 but something.

This was my understanding people are regularly mislead / misunderstand trusts and the law / govt is slowly undermining them. Even a pre nup isn't iron clad if not kept updated.

[ivanp]

The widow dies and Harry makes a relationship property claim. He may get nothing but with a 20yr relationship the odds are strongly in his favour. Not 50/50 but something.

The house doesn't belong to the (hypothetical) widow, it belongs to the trust, and the widow is just one of beneficiaries of the trust. So I'm not sure if there is any ground for any relationship property claim... In their hypothetical 20yr relationship they enjoyed possession of the property (like tenants), not ownership.

[Winston001]

The house doesn't belong to the (hypothetical) widow, it belongs to the trust, and the widow is just one of beneficiaries of the trust. So I'm not sure if there is any ground for any relationship property claim... In their hypothetical 20yr relationship they enjoyed possession of the property (like tenants), not ownership.

A good question. If the widow and handsome Harry were merely tenants then you would be correct.

But in the context of this discussion, we can assume that Donthatetheplayer's widow is a beneficiary of the trust and probably a primary beneficiary. Harry can make a claim under section 182 Family Proceedings Act 1980.

[donthatetheplayer]

Winston, would handsome Harry have a claim to the investment properties owned by the trust also?

I would assume any claim he had to the PPOR would be a small share, not a half share. E.g if four primary beneficiaries he could only claim half of my wife's share or a fifth share overall?