Latest News [index] Trusts and timing
Trusts and trust busting are subjects that are regularly reported on. However, sometimes in all the hype and the fear propogated by the reports the simple facts get diluted or disregarded.
While there is no fail safe way to protect assets from creditors or partners or the State, historically, trusts have proven to provide the best asset protection over time.
However, timing is critical. A trust settled before a relationship starts or a creditor issue arises, is vastly more likely to provide the expected protection.
That said, timing is not the only critical factor - appropriate management is also essential if a trust is to operate in the manner expected.
Trust deeds are not documents to sign and file away for a rainy day. Effective trusts are reviewed and managed as often as is necessary given the assets owned by the trust. It is the area of management that lets down the vast majority of trusts. Good management can require professional assistance and can be expensive. Of course exense is a relative concept and the cost of good management should be balanced against the value of the assets that are owned in trust.
If you have a question about whether a trust is right for you, or whether an existing trust is being adequately managed, contact a member of the Ayres Legal team.