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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22318
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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I have set up A Family Home Trust to protect my asset. I did

Customer Question

I have set up A Family Home Trust to protect my asset. I did it online and have applied and got an IRD #. I also have set up a separate bank account in that name. My question is what is the best way to transfer my home into the Trust? I am 57, a widow living on my own and I don't want it to take years. I initially thought once the paperwork was completed it was automatically in that Trust and protected.
Submitted: 3 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 3 months ago.
You need to transfer the property into the name of the trustees which is usually done by a lawyer, unless you have access to Landonline, the computerised title system. The trust would need to pass appropriate resolutions and you need to complete a deed of gift to the trust. This can be done fairly quickly as there is no real delay involved. You do need to consider why you have a trust as there should be a specific reason. It's not usually necessary except if you are in a self employed position where personal liability is an issue or where there are potential relationship property issues. You may need to file separate tax returns and lose some control over the property as well.
Customer: replied 3 months ago.
I did say I set it up to protect my family home, I do have a Trustee Resolution, Deed of Nomination and a Deed to Establish all signed - I am the sole Trustee and Settlor but thought there maybe was something else I needed to do. Say if I had to go into residential care in the next 4 years, the only assets I would have would be my savings - correct? I was reading about gifting but thought opening up a Family Home Trust would automatically mean the family home is now owned by the Trust not me.
Expert:  Chris The Lawyer replied 3 months ago.
The establishment of the trust is the first step. You must then transfer the title to the trust and record the gift to the trust. Although WINZ do refer to a four year period for gifting, in fact they do look at longer periods. Sometimes they go back up to 10 years so any protection is only in place after a longer period. WINZ look at all transactions which diminish your assets, whether land or money or chattels. A properly set up family trust should have several trustees and an independent trustee, otherwise it may be considered a sham.
Customer: replied 3 months ago.
Thanks for that, it is clearer in my mind now.
Expert:  Chris The Lawyer replied 3 months ago.
Great

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