How to Keep Your Trust Simple Without Giving Up Protection
Many people think winding up their Trust will make life easier. Moving everything back into your personal name doesn’t simplify much, it just removes the protections you worked hard to set up.
The good news is that most family Trusts can be managed with very little extra effort.
1. Home-Only Trusts
If your Trust owns just your family home:
- There’s **no need for a Trust bank account**
- Rates, insurance, and maintenance can all be paid by you just as if you owned the home personally.
- No Trust tax returns are required.
Day-to-day, nothing changes—except your home is protected.
2. No Independent Trustees
The law doesn’t require an independent trustee. If your Trust has only modest assets, subject to the terms of the trust deed, you can remove professional trustees. That eliminates unnecessary fees while maintaining the Trust's validity.
3. Investments? Use a Deed of Loan
If the Trust has minor investments, you can:
- Sell them from the Trust to yourself, and
- We can prepare a Deed of Loan for the loan from the Trust to you.
That way, the Trust has no income to declare. You receive the income from the investments personally, while the Trust retains ownership of core assets, such as your home.
4. Good Records = Simplicity
Whether you own assets personally or through a Trust, **someone needs to keep records.** Clear documents—kept in date order—avoid confusion later and protect your family from stress if something happens to you.
Real-Life Stories
**✅ Success – Mary**
Mary thought her Trust was too much work. We showed her she didn’t need a separate bank account or trust tax return. Her finances remained as simple as before, with protection still in place.
**⚠️ Failure – John & Jill**
John wound up his Trust “to simplify things.” A year later, he died, and his daughter Jill inherited his home. She and her partner had already been living together for over three years, and they had moved into the property. Six months later, Jill separated from her partner, and half of her inheritance was lost in the property settlement.
The Bottom Line
Simplification doesn’t mean winding up. With a few clever tweaks, your Trust can be as easy to manage as your personal finances—while still shielding your home and assets.
📖 **Next step:** Contact us to book a **Trust Check** at our offices or via Zoom with Kirsty Hourigan +64 9 4155704. We’ll show you how to simplify your Trust the smart way, without giving up the protection you still need.
Disclaimer: This blog is general information only, not legal advice. The decision to wind up a trust has profound implications, including potential loss of asset protection and tax consequences. Please seek professional advice for your situation before taking any action.
