TO TRUST OR NOT TO TRUST
Trusts have been a popular means of protecting wealth for many years in New Zealand, and with good reason. They protect assets for individuals and their families with the ultimate aim of preserving or growing the assets for the future.
When you purchase an investment property, the ownership structure you choose can have implications on your tax status and impact your overall financial situation. Trusts are an increasingly popular ownership option for property investors, but establishing a trust is not something to be taken lightly. Doing so brings a raft of considerations – no less so in the case of property development.
Understanding the workings of a trust is key to deciding if this structure is the best way of protecting your property investments.
WHO ARE THE PARTIES INVOLVED IN A TRUST?
There are three parties to a trust – the person or persons who set up the trust (the settlor(s)), the people the trust will benefit (the beneficiaries) and the trustees who
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