Should we recommend Family Protection Trusts (FPTs) instead of standard Discretionary Trusts for new structures?

The answer is an emphatic YES — and here’s exactly why:

Why Use a Family Protection Trust Over a Standard Discretionary Trust?

1. Standard Discretionary Trusts are NOT Purpose-Built for Asset Protection

Most discretionary trusts:

• Are designed primarily for tax minimisation, not protection.

• Lack lineal bloodline clauses, protections against family provision claims, and corporate trustee structuring best practices.

• Have no succession planning embedded — meaning control can fall into the wrong hands (e.g. ex-spouses, bankrupt children, creditors).

  
  

  

As Grant Abbott puts it in Family Wealth Protection in Australia: "Most families only set up a trust to reduce taxes — and that’s where it stops. These trusts aren’t purpose-built to protect family wealth for generations"

2. Family Protection Trusts are Structured Like the Royal Family

FPTs are built from the ground up with:

• Bloodline protection (to keep assets in the family for generations)

• Guardian provisions to ensure oversight of vulnerable or addicted beneficiaries

• Corporate trustee control with strong appointor clauses

• Optional Board of Advice or Board of Guardians structures

• Asset protection even in family law, bankruptcy, or death scenarios

  
  

  

They also follow succession planning protocols similar to the British Royal Family — ensuring there’s always a backup and clarity around who controls and inherits.

3. FPTs are Strategic Structures — Not Just Legal Documents

They integrate:

• Succession planning

• Asset protection

• Estate planning

• SMSF integration

• Bloodline wealth preservation

  
  

This is what makes them "next generation" trusts — and why accountants should see them as strategic structures, not just administrative tools.

4. Why Accountants Should Charge More for Trust Setups

If an accountant is still setting up $1,500 trusts from generic templates:

• They’re exposing their clients to major future risks (litigation, loss of family wealth, legal disputes).

• They're underselling their value and risking their PI insurance.

  
  

Instead, they should:

• Shift from “cheap trust provider” to strategic family wealth adviser.

• Offer Family Protection Trusts as premium, bespoke solutions.

• Use LY Legal and Strategist AI to create tailored Client Letters of Advice and asset protection strategies.

Clients will happily pay $4,000–$6,000+ for a properly structured Family Protection Trust with the right legal, succession, and asset protection outcomes. It’s all about value and long-term security, not short-term savings.

5. Use the Strategist AI Tool to Educate and Convert Clients

If you're an accountant or adviser:

Use Strategist AI to auto-generate letters to clients explaining:

• Why their current structure may be outdated or risky

• The benefits of upgrading to a Family Protection Trust

• Your new offering as a Strategic Family Wealth Adviser

  
  

Generate succession plans, trust upgrade strategies, and estate protection pathways in under 10 minutes.

Summary: Discretionary Trust vs. Family Protection Trust

Feature	Standard Discretionary Trust	Family Protection Trust (FPT)
Purpose-built for wealth protection	No	Yes
Bloodline protection	No	Yes
Succession plan built-in	No	Yes
Asset protection from family law	Limited	Strong
Creditor protection	Partial	Full with corporate trustee
Governance (Guardian/Board)	Rare	Standard
Setup fee	Low ($1.5k)	Higher ($4k–$6k+) for good reason

Next Steps for the Accountant:

• Stop offering standard discretionary trusts for new setups.

• Educate clients using Strategist AI — deliver tailored client letters showing the risks and benefits.

• Collaborate with LY Legal for legal implementation and protection strategies.

• Position your firm as a Strategic Family Wealth Protection practice, not just tax and compliance.