Can a Trust be trusted?

Hands up who uses a trust to run their business and protect their assets?

If you have a company as the trustee then you have the best level of asset and personal protection.  If you don't, then you need to see Cliftons (www.cpaaccountants.com.au).

Trusts are by far and away the best method of protecting your assets whilst also getting the benefit of tax-effective distributions to utilise low tax rates across family members, including children.

In recent time, however, the courts and particularly family law courts, have been looking more closely at trusts that have been established with the (seemingly) sole purpose of hiding assets from or making them inaccessible to spouses.  The courts are looking at what assets went into the trust, when the trust was established, who are the beneficiaries and who ultimately controls the trust entity.  This that assets you thought were beyond the reach of the other party can and likely will be brought into the equation for the calculation of a settlement and maintenance.

Whats the answer?

Get good advice before you do anything.  Will it be costly?  Quite likely.  But think of what it may cost you otherwise.