Family Protection Trust (Individual and Corporate)

About Product

The LYD FPT is a discretionary trust that accords with the Bamford decision, is discretionary and its strength lies in the succession of Leading Member Family Protection Appointors.
One of the most important things for any professional, executive, business owner or any person subject to litigation is to provide asset protection and pass their wealth to their family lineage.
LYD is strong on asset protection and the Family Protection Trust is a stand-alone discretionary trust or to be used with The Protector strategy available on LYD.

► $229.00 (inc GST) - OR provided under your unlimited membership

► The master document has been signed off by LY Legal and is congruent with Australian law.

General Information

The original Leading Member Family Protection Appointor (LMFPA), controls the trust, the trustee and the beneficiaries – all for the benefit of the LMFPA’s family lineage.

Upon the death, divorce, dementia or bankruptcy of a current LMFPA, the role is passed to the next succeeding LMFPA and so on down for the life of the FPT to ensure longevity, safety, security and certainty. In addition, family lineage or blood relative beneficiaries of the LMFPA are core primary beneficiaries to be distributed to before any non-blood relative. The LMFPA has the power to deem a person, such as their spouse as the blood relative.

For non-blood relatives or non-succession control, the LYD Discretionary Trust should be used.

Benefits

Simple and easy to prepare
Focuses on succession in a family so the Family Protection Trust lasts for generations (subject to the rule against perpetuities)
Keeps family wealth in the family lineage.

Frequently Asked Legal Questions

How does it differ from an ordinary Discretionary Trust?

The FPT is based on the LYD Discretionary Trust with the added value of limiting Trustees, Appointors and Beneficiaries to the family lineage with a strong focus on succession in the Leading Member Family Protection Appointor. For bucket companies, a standard Company should be used as well as a Leading Member Trustee company as the Trustee.

Can my existing Discretionary Trust be upgraded to a FPT?

There can be an upgrade and the Commissioner of Taxation has advised that there is no resettlement. However, if you would like legal advice to that effect contact our legal team – tanamourlis@abbottmourly.com.au

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 30-50 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Is this document a legal document?

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Is the document easy to read?

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

What lawyers sign off on the LYD documents?

All LYD documents are prepared and signed off by LY Legal.

Are the LYD documents reviewed regularly?

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Can I get a sample of this document?

Yes, please email support@lyd.com.au to request a sample document for you to review.

Stamping and Lodgment of Trusts

The fees and stamping requirements for establishing a trust deed vary throughout Australia, and the duty payable also varies depending on the type of property that is held by the trust. Please contact our partners at Eventum Optimum (EO) on info@eventumoptimum.com.au for more information on when stamping is required (in what jurisdictions) and the fees/duties payable. EO are able to provide this service to you.