There are many different types of trusts available: asset protection trusts, special needs trusts, constructive trusts…the list goes on. However, the most effective trust used to build and maintain family wealth is a family trust. A family trust is used specifically to benefit the individuals in a certain family. A family trust enables the grantor to protect family assets.
“What are the benefits of a family trust?”
We try and help you understand the immense value of a family trust:
- Protecting dependent family members: A family trust can be used to protect family wealth for members of the family who may not be able to support themselves. These individuals include those with special needs and chronic illnesses.
- Variable incomes: It’s very rare that every member of a family makes the same income. However, this can cause a dispute when it comes to who should be in charge of which assets. By setting up a family trust, this issue is avoided because income from these assets can be fairly disbursed to each family member. The amount that each member gets is dependent upon their tax rates.
- Succession planning: One of the most beneficial elements of a family trust is the ability to accumulate and maintain family wealth for future generations. By using a family trust, members who receive money from said trust are exempt from tax consequences.
At TAT Accountant, we provide a wide range of Family Wealth Services including Trusts, Estate Planning and offshore structuring. We handle everything from payroll services to the handling of family trusts. Family trusts are a fantastic way to both build and maintain family wealth. Unfortunately, many people are still sceptical of family trusts and wonder, “What are the benefits of a family trust?” However, as you can see, there are quite a few significant benefits. If you or someone in your family is interested in setting up a family trust or needs assistance in managing an existing family trust, TAT Accountant consultants are here to help.
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