It is always good practice to have regular reviews of your succession plans. As real estate is clearly becoming significantly more valuable as the increases in value are reported regularly and have become a source of both pleasure and pain. The pain can be that the more valuable the real estate the bigger the problem to sort out with disputes arising from your estate or even relationship property disputes. Property owners should therefore seriously think about the asset protection plan and succession plan being reviewed regularly.
There have been many developments in case law, in particular with trusts coming under scrutiny and challenged in relationship property cases. The Courts are now readily giving awards against trust assets for contributions by spouses and upholding claims where the rights of spouses or partners could be defeated by the transfer of assets to Trusts.
A recent development has been in some circumstances to include a “separation” clause in Trust Deeds providing for division of the trust assets in the event of separation as a means of avoiding costly disputes when a separation occurs. These clauses can be inserted in existing trusts by way of a Deed of Variation, which may be accompanied by a Contracting Out Agreement, but not always.
As personal circumstances and asset values change regularly then in turn regular reviews should be part of good asset and succession planning.
We are happy to assist and review your existing Trust(s) and provide you with our expect advice in this area. If you require our legal assistance please contact the lawyer in our firm who normally advises you, or alternatively contact:
Michael Nidd
mnidd@farry.co.nz
03 477 8870 or 09 379 0055
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.