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Cleary Hoare, Australia's pre-eminent taxation and capital protection law firm for private business, has over 30 years experience.

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Cleary Hoare's Bloodline® Trust

The best way to ensure that your hard-earned assets are protected and preserved for the benefit of your spouse, children and grandchildren, after you have passed away, is by incorporating Bloodline® Trusts in your estate plan.  A Bloodline® Trust is a premium form of family trust where the flow of capital is restricted to your bloodline.

We have all heard stories about people forming new relationships after the death of their spouse and changing their Will to leave all of their assets to their new partner, thereby depriving their children of an inheritance.   While dramatic stories of family disputes capture our interest, assets are more commonly depleted or wasted through sheer bad luck, such as the divorce or financial misadventure of your surviving spouse or children.  In these cases, any assets of the individual are at risk.

The Bloodline® Trust is unique to Cleary Hoare.  We invented this trust to address our clients' concerns about financial stability in the next generation.  A Bloodline® Trust provides this stability, ensuring assets are protected and preserved for the benefit of your bloodline. 

Under most Wills, the Will-maker leaves their estate directly to individuals, that is, their spouse (if their spouse survives them) and ultimately their children.  Unfortunately, this does nothing to protect and preserve those assets in the years to come.  If the individuals to whom you have made gifts under your Will subsequently divorce, separate or suffer some financial misadventure, those assets may be severely diminished or lost entirely. 

Rather than making gifts under your Will to individuals, you can make gifts to Bloodline® Trusts earmarked for those individuals.  After your death, the individual you have intended to benefit will control the Bloodline® Trust earmarked for them and be able to use the assets in the trust as if they owned them.  However, those assets will not be at risk should the individual divorce or suffer financial misfortune.

For more specific information on Bloodline® Trusts and the Family Court please read our newsletter article from December 2013.

Under the terms of a Bloodline® Trust:

  • the passing of the capital assets or proceeds is limited to the Will-maker's bloodline;
  • income may be distributed to a broader range of beneficiaries, including in-laws (at the discretion of the trustee);
  • assets are protected from attacks against beneficiaries, whether from personal creditors or the Family Court;

Using a Bloodline® Trust in your estate plan, as part of your Will or as an entity in which to accumulate assets during your lifetime, provides a flexible, comprehensive and protected structure to hold assets for the benefit of your spouse, children, grandchildren, etc.

Establishing a Will utilising Bloodline® Trusts is more complex than a standard Will because of the detailed rules and conditions they contain.  The cost will largely depend on the complexity of the Will-maker's estate.  The potential cost savings, financial benefits, risk prevention provisions and tax advantages will far outweigh the initial cost.  A fixed quote is provided before any commitment.

The Bloodline® Trust is unique to Cleary Hoare. We developed it, trademarked it and have proven its success time and again.

If you wish to know more about estate planning and Bloodline® Trusts, please contact one of our specialist tax lawyers.