A builder was starting a new building business and wanted to protect his family home from creditors of the business.  He had signed up a business loan with the bank and some lease documents in relation to some vehicles.  

He then approached a lawyer for advice about setting up a family trust to protect his home from creditors.  He was advised that generally it is best to set up a trust before you enter into any liabilities when you are setting up a business.  Otherwise, it can be claimed that you are putting your asset into a trust with the intention of defeating creditors.  

He ultimately set up the trust, but it was possible that the transfer of the family home to the trust would be clawed back under insolvency provisions if the worst came to the worst down the track.  It pays to take legal advice before you go into business, to ensure you can best protect your assets.

Family Trusts are an important part of asset protection in New Zealand. Our family trust lawyers can help you with all the legal advice that you need to:

  • Decide whether a family trust is necessary for you and your situation;
  • Set up your family trust;
  • Transfer assets to your family trust;
  • Set up suitable gifting arrangements;
  • Maintain your family trust once it is set up to protect it from “trust busters”.

Call us for a relaxed friendly chat on 04 4736 850 or email us at lawyers@raineycollins.co.nz