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Must I really sell my assets to my Trust and behave accordingly ? - Disposition of Ownership of Assets

This is a vital issue in many Creditor-Debtor disputes. In fact, in a Court decision not so long ago showed the judge willing to ignore an Asset of a Trust( the residential home), which had been transferred some years earlier to that Trust. It was therefore open to attack by creditors ! The original owners had made the mistake of retaining control over it (( Matarangi Beach Estates v Dawson (2008) 6 NZ Conv. 194)). Effective and permanent disposition must be established by Deeds and actions, in order for claims against the Assets of the Trust to fail.

It all has to be recorded in appropriately worded Deeds, Agreements and Resolutions so that tax requirements are met, and that the Trust cannot be deemed to be a "SHAM" Trust or be imperfect in any other way.  The Trustees should also be able to show, by means of accepted behaviour, that the Settlor has genuinely disposed of his or her Assets to the Trust.

At Sanctuary TrustLaw we know how this is done in the right way, and we will guide you at our yearly Review meetings to ensure that all your trust matters have been attended to. Your Family Trust will then be safe.

 



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