Insight for Sunday 1 May 2011

Official figures show one in 18 New Zealanders has a family trust, far more than any other country.

A family trust allows people to separate off their personal assets so they are protected from business creditors.

They can also help minimise tax obligations.

But with the country facing financial challenges, are family trusts still acceptable?

As the Law Commission examines trust legislation, Penny Mackay explores whether a family trust is a legitimate and useful legal instrument or an unfair advantage for the better off.