Last month Gilligan Rowe and Associates Ltd, (through our trustee company Cornwall Trustees Ltd) was awarded the prestigious ‘2008 New Zealand Corporate Trustee of the Year’ award by the New Zealand Trustees Association.

Naturally, we’re pleased, but while it may be a big deal in our little world and makes us feel pretty good about ourselves, it’s only on reflection the real message behind this story jumps out.

And that message is about two things: security and procrastination.

According to Errol Anderson, Registrar NZ Trustees Association, “A real strength of this Corporate Trustee (GRA) is the hands-on commitment from the Directors through to clerical staff where their integrity and personal belief in the structure and process provides the client with a high degree of security.”

It’s this ‘high degree of security’ that I really want to impress upon readers.  We all want it, but often never believe ‘out-of-the-blue’, negative, life-altering events can affect us. 

We see it time and time again; people want the protection of a business or family trust after a major financial disaster, relationship split or unexpected life event!   While we can help some people and protect them from future events, most often it’s just too late!

I don’t believe Professional Trustees are meant to be in the ambulance business - we’re in the protection business.

Procrastination and putting off decisions to set up a Trust can cause pain. Real pain.  Not just financial pain, but also health and relationship pain. We see it all too regularly.

Rather than tell you about people who get it wrong, I’ve decided to share a TRUE good news story where our client made the decision, and took action.

For privacy reasons, we’ve changed our client’s name …let’s  call him ‘Mike’.

Mike and his business partner had grown their services company to a very large and successful enterprise in New Zealand, with a recognisable brand and a great reputation.

Everything was looking good. It would have been easy for Mike to believe they were bullet-proof.

But he didn’t. He knew that in business (and life) things you may have no control over can come out of ‘left field’.  So three years ago, he contacted us and set up a Trust. Full financials were completed and all Trust administration including gifting was concluded.

Along with his business partner, Mike had business dealings in Australia and gave personal guarantees to a creditor. Sadly, the company got into financial difficulties (through no fault of Mike’s) and Mike’s partner elected voluntary bankruptcy. This automatically involved Mike, and bankruptcy proceedings are presently underway.

Is Mike happy his business failed through no fault of his own? No. Is Mike relieved he took action to establish a Trust to protect his assets? Yes!

The relief came because as Professional Trustees, we understood his situation and we had a strategy. Next, we implemented the strategy and reviewed his situation each year for three years.  In this case, our client is protected.

We have an industry in New Zealand we can be proud of. So, on the outside while some people might view our job as a mystery or even stuffy, we know as Professional Trustees it’s all about helping people protect what’s important.   Our industry is full of good, professional people who care. But while we think we’re good, we’re not good enough to make you take the first step. 

That is completely over to you.