A special purpose Trust which typically differs from normal Family Trusts in that the Single Trust may have a single Corporate Trustee rather than family members directly, or may list specific Trusts as beneficiaries rather than family members. These types of Trusts are used to differentiate specific business activities from normal business functions or to isolate specific assets for specific purposes.
This Trust would be used by a single person who is just starting to acquire assets such as their first home and want to use the Trust to keep their assets separate from future relationships.
FOR SEPARATION OF PROPERTY FOR RELATIONSHIP PROPERTY REASONS
An Investment Trust may be used to hold a particular asset thus keeping it protected from being classified as “relationship property”. Using a sole independent Trustee, or not listing individuals as beneficiaries, could provide an extra level of separation from a relationship claim.
FOR RISK MANAGEMENT FOR BUSINESS PURPOSES
Holding a specific asset in a special purpose Investment Trust may be a prudent measure for reducing risk in a business environment. Limited liability Companies do have some protection from creditors but often that protection is removed by the giving of personal guarantees by Company owners or through liability as a director. Placing specific assets into Investment Trusts may separate those assets from assets that are under control of the Company Director and provide the protection that Trusts give in such circumstances.