It seems the biggest problem with discussion on this thread is that very few of the responders actually know how modern family trusts work and what their purpose is.
While its true that corporate trusts have been exploited for tax purposes, paticularly by the property development fraternity, ( and that loophole has recently been closed down in most states ) any major tax advantages family trusts may have offered have been closed off for many decades.
Today, family trusts are only of use to those who require a very long term, stable foundation to manage their affairs, that is unaffected by the day to day events of individual trust participants. Two areas where this is applicable are farming businesses and also those who wish to provide lifetime protection and support for disabled or vulnerable people.
In the case of farms, assets can be held in trust to allow the business assets to be protected from individual death, divorce, personal bankruptcy due to an individuals poor life choices such as gambling etc. While the individual is still fully liable under law for their personal circumstances, they dont take the whole family business down with them. It also allows farmers to adjust income to participants in times of drought or the easing off and retirement of parents etc.
Another advantage is the smooth transition of business assets between generations, without adult children having to wait until the death of parents to take over the financial responsibilities of managing the business assets. ( paying the rates taxes and insurances etc. )
Another area where long term, intergenerational planning and stability is required is in the provision and security for disabled and vulnerable people. In the tragic case of Anne Marie Smith media reports indicate her personal valuables, jewellery and bank assets where stolen, but her house was kept safe. A couple of reports have stated the alleged offenders made attempts to gain control of the house, but where thwarted by Anne Marie's parents ensuring the ownership of the property was through a trust, rather than Anne Marie owning it directly. I am currently trustee for a family owned house that is held in trust for an extended family member and was purchased for similar reasons to Anne Marie's.
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