Yes – you should set up a trust for the protection of your family’s wealth. There’s no doubt about it.
A trust can be set up to replace a traditional will, or, more commonly, a trust can be set up as part of a will. Either way, setting up a trust will protect your family’s wealth.
This is all thanks to capital gains and estate duty tax exemptions…and other protections against risk to your family’s financial future.
Set up a trust to protect assets from time, tax and other threats:
The administration of trusts for the benefit of beneficiaries also bypasses the court process that can make estate administration such a lengthy process.
Many families suffer in that waiting period, subject to paying your debt, collecting your and their own new creditors they can’t pay, and suffering financial insecurity and, in some cases, significant hardship. They could owe their inheritance in its entirety by the time they get it – if you leave them with debt.
Different trust set ups to further family financial goals:
There are a number of different ways that trusts cane be set up to attain family financial goals (as oppose to individual goals).
- Some trust set ups keep capital in investments, earning income for family members, but safe from any individual beneficiary wanting to sell off.
- Other trusts are set up to maintain and ill, incapacitated or disabled family members – paying medical bills and living costs.
- Other trusts provide for children or younger family members, until they come of age legally, or as per the terms of the trust.
- Still other trusts can be set up specifically for investing and doing business – to grow family wealth.
Trusts are set up to protect family financial future:
Capital gains tax, estate duties, having to sell off assets to bequeath their value to beneficiaries, debt, creditors, mortgages, death of a beneficiary, disability and recklessness – all factors that threaten a family’s financial future.
You might also be interested in
SVDP for Special Offshore Tax Structures
Thanks to tax benefits (among other benefits) off-shore company registrations and structures have always been ideal for: Import-export companies International trading companies Asset holding companies Family and other trusts Other property investments Intellectual...
What is the estate planning process?
The Estate planning process is essential for family wealth protection. It is intended to ensure that the distribution of your assets is straightforward, not delayed by dispute or unnecessary court processes. The estate planning process can also ensure that your...
What does it mean to have a family trust and the advantages
A family trust is recognized as the best way to ensure that family wealth is protected over generations. Having a family trust means minimising risk to assets through the separation of those assets from the donor’s estate. To go further into what it means to have a...
With over 23 years of unwavering expertise, I am a seasoned Chartered Accountant committed to financial excellence. My journey in the realm of finance has been marked by astute strategic insights, meticulous attention to detail, and an unyielding dedication to precision. Over the years, I’ve navigated the complexities of financial landscapes, providing invaluable counsel to diverse clients. My proficiency extends across auditing, taxation, and financial management, coupled with a profound understanding of regulatory frameworks. As a registered professional, I have consistently upheld the highest standards of integrity and ethics, earning a reputation as a trusted advisor in the dynamic world of finance.
