-The possible reintroduction of estate duty.
-Claims on personal assets by business creditors.
-Relationship property claims
Trusts can also offer benefits, such as the ability to split income to family members on lower marginal tax rates, ease of transition of assets on death and safeguarding of assets for vulnerable children.
The purpose of establishing a trust should be clearly identified. Trusts which have been established for the sole purpose of avoiding tax or increasing eligibility for government subsidies are unlikely to withstand scrutiny.
It is important that trust administration and record-keeping be diligently attended to if the trust is to be considered genuine (or not a sham).
Consideration needs to be given to which assets should be held in the trust and how the trust should be structured. Due to the complexity of issues, good advice from a solicitor and accountant is essential.