Golden rules for what goes into the family trust
One of the most common questions from people considering a family trust is, "Should I put my company into my trust?"
Wednesday, April 20th 2005, 9:03AM
by The Landlord
Given that the purpose of a family trust is to reduce personal wealth, whilst securing assets for your own use and for future generations, there is a simple golden rule when considering what to put into a trust.If an asset is likely to rise in value over time, and if it is something you may like to pass on to your children, it should be placed in your family trust.
Assets such as your family home, public shares, life insurance policies, family heirlooms and antique jewellery fall squarely within this category.
If an asset is likely to fall in value over time and if it is something that is likely to have a relatively short lifespan, it should be kept out of your family trust.
Into this category fall such items as household appliances, clothing, personal effects and vehicles (unless you own an original Ford Model T).
If you are self-employed, the shares you own in your business are likely to appreciate in value (after all, that should be the key goal of your business). For that reason alone, your company shares should be put into your family trust as soon as possible.
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