So you’ve got a family trust…

It might sound like a scene from a hit Hollywood TV show, but dealing with family trusts is a core part of our work at Sally Callander Law.

We’ve spent many years helping clients establish & manage trusts, including providing advice to trustees & beneficiaries on their rights & expectations.

So, what exactly is a family trust?

A family trust is a fund used to hold & manage assets for a family. In Australia, family trusts are established by trustees (usually parents). The trust holds assets (usually money or property) that is then distributed to its beneficiaries (usually children/grandchildren).

How does it work?

A trust deed is drawn up, outlining the rules & procedures for the trust’s operation. A trustee is appointed to manage the assets & identify beneficiaries who can receive income/assets from the trust.

What happens if the trustee dies or loses capacity?

When a trustee dies or loses capacity, the trustee role becomes vacant.

Exactly how it is filled will depend on the terms of the trust - the trust deed will outline how control of the trust passes.

Do I still need a will & estate planning documents if I have a family trust?

Yes. A trust is completely separate to a will or other estate planning documents. Even though the assets in the trust might feel like your property, they’re not - they belong to the trust & they continue on if you die or lose capacity.

Even if you have a family trust, you still need a will & estate planning documents to address any assets/financial matters that are held outside of the trust.

FYI you can’t use your will to gift assets in the family trust to your loved ones - only assets you own outside the trust.

I’m a trustee. When should I see a lawyer about my family trust?

It’s important you obtain regular legal advice & make sure you have a current succession plan.

Trusts often run for decades - the best plan for the trust of 1930 may not be the best plan for the trust of today.

Speak to the team at Sally Callander Law today about your trust - we can help you navigate all legal matters relating to your trust & update it to ensure control of the trust passes to the most appropriate person.