Asset planning & estate protection

Posted by: Hamish Walker on 26 May 2007

Buying assets in your own name and preparing a Will leaving those assets to loved ones is not enough to protect your assets. Your Will (if you have one) does not protect you or your assets before you die, and personally owning assets gives you no protection against such risks as:

• Family changes - A new spouse (whether your own or a child's) may acquire an interest in family assets without having 'contributed' to existing family assets. This may cause conflict within the family.
• Business - Business failures or creditor claims may occur.
• Government - User pay charges (such as means testing for long term geriatric care) may be a factor.
• Tax - Taxation while living and taxation (and, potentially, duties) on death.

Without a comprehensive asset protection and estate planning plan you cannot be certain that your important objectives will be achieved in the event of the above circumstances.

A comprehensive plan may include not only a Trust Deed and a Will but a Property Relationship Agreement, Enduring Powers of Attorney, Acknowledgment(s) of Debt, Deed(s) of Forgiveness of Debt, Gift Statements and a Memorandum of Wishes. To operate and manage your Trust you also must undertake various practical steps and measures including the maintenance of accurate and properly detailed trustee minutes (decisions) and record keeping from day one. Without these, the trustees' decisions (and in some cases the validity of the Trust itself) may be challenged.

In implementing a comprehensive asset protection and estate planning plan, your Trust will own all of your important (valuable, appreciating and higher security) assets. The desired result is 'personal poverty', and a 'rich Trust'.

Whether you are looking to ramp up your wealth creation programme, ensure your existing and future assets are properly protected, or have peace of mind with estate planning, please contact us for a free one on one session to discuss your particular needs.


- By Hamish Walker of Walker & Co, Lawyers. If you have a question for Hamish or would like to find out more please visit http://www.walkerandco.co.nz