Key Steps In Establishing An Asset Protection Programme Using A Family Trust

1.  Objective of programme:

Endeavor to protect against:

• creditors/predators
• future re-introduction of estate duty or capital tax
• matrimonial property/family protection claims

Possible incidental benefits:

• obtain tax benefits
• maximise benefits from Income Support
• charitable donations

2.  Identify beneficiaries 

3.  Establish main points of Trust(s):

• name of settlor(s)
• names of trustee(s)
• names of beneficiaries
• name of Trust(s)
• power of appointment

4.  Identify assets to be transferred

5.  Estimate likely fees and disbursements

Fees will be charged in two or three interim amounts during the course of setting of the trust

6.  Prepare:

• Trust Deed(s)
• Letter(s) of Wishes
• New Wills
• Enduring Powers of Attorney (if applicable)
• Powers of Attorney and Deeds of Delegation

7.  Have primary documentation signed

8.  Interim report to client

9.  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.

10.  Confirm receipts of valuation

11.  Search title(s) to any property/ies

12.  Check trust proposal with client’s accountant

13.  Obtain consent of mortgagees

14.  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

15.  Obtain independent advice where required for any party

17.  Forward certificate to bank

18.  Lodge necessary documentation with IRD

19.  Obtain IRD number(s) (if applicable)

20.  Obtain GST registration for appropriate Trust(s)

21.  Open Trust bank account – client (if applicable)

22.  If applicable:

• Complete Trustee Company Minutes
• File company office notices

23.  Register documents with LINZ

24.  Register documents with Share Registry

25.  Register with insurance companies

26.  Notify local authority of change of ownership

27.  Draft Opening Minute

28.  Second interim report to client

29.  Complete Opening Minutes and arrange Minute Book

30.  Review financial planning advice position

31.  Forward documents to bank

32.  Report completion to client and accountant

33.  All original documentation, including agreements and valuations to Trust deeds packet

34.  Open Trust administration file and record Trust details on Trust register

Go to our Trust Administration Checklist 

May 2011