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FAMILY LAW

Inheritance Trusts

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An Inheritance Trust is simply a Trust you set up in order to transfer your estate to on your death. 

You don't  "will' your property to your kids.  You "will" it to the trust. 

See the advantages below.

The average Will for a family is usually where a partner leaves everything to the other with a gift over to children and a provision for the substitution of grandchildren if the child ( parent ) has died.

While some people have decided that a Trust is not appropriate for their own circumstances,  many are considering that it would  be wise to form Trusts for their children or encourage their children to up their own Trusts.

We have placed this topic within a separate category but it clearly must be read with our other related topics in the boxes at the top and the bottom of this page.

Put quite simply,  instead of leaving your assets to your child or children you leave it to a trust with that child or those children as the beneficuairies. 

That way, you are able to retain some control, or at least, guidance over those assets. 

This then gives the parents the opportunity of leaving a child's share in the their estate directly to a Trust in which that child is a discretionary beneficiary and who will possibly control the Trust at some time or another.

The advantages include:

1.   ' Ring fencing ' assets for a particular child and his family.

2.   Avoids the necessity of a child, who wants to transfer personal assets (including the subject of any bequest), to a Trust, having to sell those assets to another Trust at market value and then having to embark upon a gifting programme to eliminate the debt. A simple bequest to a Trust for a child will avoid that having to happen

3.   Gives the spouse the opportunity of retaining some sort of control over the asset for the child (if felt necessary) in that the asset can be transferred to a Trust controlled by persons other than the child until a date on which the Trustees de

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"Membership No 186685
I have been unable to acquire any case law in regards to bankruptcy. I am thge alleged defendant in the matter and have opposed the application for bankruptcy as I am not the defendant. The case is now at the stage of the high court requiring a synopsis under 251a, I wish to make submissions in not being notified of the hearing at the district court after the notice of proceeding was served. The matter then got judgement without my knowledge and is now before the high court for bankruptcy. Please advise the procedure to locate any supportive case law that may assist with my application to set aside the bankrupcy claim.

Kindest Regards
A.Marsh
I "

"You will certainly get a rehearing if you were not notified but, if you simply misread the documents you were originally served with then you could be in trouble. You must actively follow up on your obligation to file and serve a defence and not just wait for the Court to come to you. Good luck . . . Netlaw "
"Likewise . . . very helpful. Thanks. Gerald - May 2007 - Tauranga"
"Received notice from a creditors lawyer that they wish to put in companiy into liquidation and I have up to today upon receiving their letter. A Statory Demand was intially sent on 7 Aril 2008, which I reponded with a reply explaining that an arrangement (verbal) had been entered in by both parties which was to continue supply, once company got post dated cheques, company stopped surpply and but still continued to present cheques which was not the agreement which was entred into.
What position does that leave me if I want to legal challenge this. Without causing me excessive expresses.

Rina

Netlaw responds: If you say that they cannot properly sue because there was a new agreement for time payment, then you can apply for an injunction saying that the Statutory Demand Notice is wrong. But it will cost you. An injunction should not be done without legal advice. Type up a Statement setting out precisiely all the facts as you know them and see a lawyer as soon as possible. A letter shouid be sent to the other side saying how inappropriate the Demand procedure is when the subsequent agreement between the parties was made and kept by you. But you must get your facts right!"

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"Thank you. My lawyer was going to charge $800 plus GST minimum for this work. Stuff him! (scuse my french) - Darls - Albany - May 2007 "
"I used this site. I thought the other company sites were also helpful, particularly the ones on suing a company as well as Directors' Liability. Tricky Law. Take care - Henk - Hamilton - April 2007"
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"Helpful . . . Muriel"
"Gosh these Trust documents are so long. There should be shorter documents. but I suppose they are necessary. But good of you to include so many docments in your site. We have been helped by your wills sites too. John Mc."
"Bloody Hell! You provide us with the documentation as well! This is great stuff. I will still use a lawyer but I now have enough information to make some informed decisions myself.
Kevin M - Hamilton"

Feedback/Blogs/Reviews from related topic: Advertising - False and Misleading
"Very helpful . . . McBreen"
"Now that I understand the principles it has made it easier for me to prepare and make final decisions. thank you. Kirsten."
"Great coverage to have it all laid out. Could you try and give us some uncomplicated documents. yours are useful but are there any simpler docs? Keep up the good work. A really helpful website. Graeme H. Wellington - May 2007"
"I have made good use of this topic and the other topics on Wills. Well done. Jim H (retired) - Devonport - May 2007"
"Bloody Hell! You provide us with the documentation as well! This is great stuff. I will still use a lawyer but I now have enough information to make some informed decisions myself.
Kevin M - Hamilton"

"Hi Netlaw...i have found your site very helpful to me in applying for a parent order. Anexcellent site with the right information, easy to use steps.

Thanks so much :)))"

"HI, posted yesterday trying to find application boilerplate for challenging will due to unsound mind (with medical evidence). Thanks"
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"Can the Family Protection Act help 2 kids 11 and 13 to some provision from their fathers estate when there is no will. They live with their mother (divorced from late father) and now his defacto (no children involved) is claiming everything and not willing to make any provision for these children. House and furniture gone to her as purchsed jointly but there is still balance of insurance, super ann. ute, boat and personal effects that could be dispersed to them. At present all they have is hte ACC weekly payment that replaces the child support thir father paid.
Is there anything fathers family can do to get something for his boys? Any thoughts or othe similar experiences??

Netlaw replies: YES. A claim can be made if there is no will. It sounds as if they have a very dtrong case. See a lawyer immediately.

"

"Dear Netlaw,
Our father had a will which was invalidated by a 3-day form of marriage. The woman in question got divorced 1-month before and married our father when he was in a semi-coma and he died 3-days later. The supposed spouse is now applying to be Administrator under the Administration Act and after $121,000 + 1/3 share of remaining property. Could you please advise, do the children (there are 4 of us) have any remedies? Your expertise will be gratefully received and is very much appreciated, thank you.

Netlaw replies: Yes. Children can file a claim under the Family Protection Act 1955 asking the Family Court to provide "further provision" from the will. Our special topic "Family Protection Act 1955" covers the principles.

But in this case, you might also be able to challenge the validity of the new will on the basis of your father's medical condition and possibly on the basis that he signed under pressure."

"Hi
I have a mother who is 80 years old with dementia. We (6 children) don't think she has a will and no EPOA. She has no real assets except $8000 in the bank which is intended for her funeral. Are we likely to run into any problems or major costs if no will exists at her death. Is there anything we could do now to make life easier in the event of her death. I'm guessing if she doesn't have a will now, its probably too late.
Any help would be much appreciated.

Thanks

Netlaw replies - It is too late unfortunately. See a lawyer."

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"My husband and I liked all this information. Keep it up please! Well worth the $45. We have spent so much on lawyers, blast them. I suppose they are necessary but when we see these concepts set out simply by you in Netlaw we wonder what all the secrecy and fuss was about in other matters. "
"I have heard that through the Will I am able to gift up to $27 500.00 of my property per year to some one that I want to inherit without paying gifting fees where do I find a template for this

Netlaw answers: Good morning,

You posted a blog on Netlaw this morning. We reply as follows.

Gift duty is not payable on money or assets which pass under your will. Therefore, you can leave $1,000,000 to someone in your will and it is not classified as a gift.
However, if you wanted to give someone $1 million during your lifetime then that would attract gift duty at 40 cents in the dollar (subject to a more specific calculation about a lesser amount of gift duty in some bands above $27,000) for any amount gifted over $27,000 per year. This is why gift programmes over a number of years have to be set up during the course of your lifetime to avoid or minimise paying gift duty.
But we repeat - money or assets left under a will are not treated as gifts for gift duty purposes. Nor are death duties payable any more. They were abolished well over 10 years ago.

Cheers . . . . Netlaw"

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