Family trusts are often used as a means of minimising tax by distributing it to family members on low incomes and low tax rates – such as adult children in tertiary education or retired grandparents, for example. The other benefit sought from trust structures is asset protection. In family law property settlement applications however, the law has been quite clear since the decision of the High Court of Australia in Kennon v Spry that assets of a family trust established before the marriage can be taken into account in property settlement orders.
Our expert family lawyers can provide advice about the likely treatment of a family trust in property settlement proceedings and also other strategies available to protect assets.
