Your house is most likely to be your most valuable asset, but you need to protect it with the right tax structure.
A house, it as part of your estate. It is subject to tax structure that include capital gains tax and estate duties. Immovable property is one of the only types of asset guaranteed to increase in value under normal circumstances, so why let taxes take a hunk out of it? And why risk your beneficiaries losing so much of the family wealth you could have left them? The unique tax structure of a family trust means that you don’t have to!
Tax and other risks to your family’s inheritances:
- Creditors could also take it if you are in debt. And if you still have a mortgage on it, a trust can continue to pay on your death. And you can ensure the trust will have funds for anything meant to pour house and assets with life insurance naming the trust as the beneficiary.
- As soon as your house is placed in a trust, it is safe from the taxman in the event of you owing taxes on other capital and income. It is also safe from the Sheriff of the Court in the event of bankruptcy, and from other creditors. This means your spouse and children won’t have to sell it to pay the taxes on it!
Other advantages to putting your assets and house in a trust:
Besides the tax structure of a family trust, it also the most likely to survive any short-term economic downturns or other instances that might force family members to sell up and distribute the income.
Maintaining the value of a house requires upkeep. Upkeep expenses would be considered a tax deductible if the house is in a trust. Similar costs associated with short ‘investment’ for long-term benefit apply to all assets and can be deducted from the 45% payable on trust income.
One house and 6 children? You don’t need to sell it off if it’s in a trust. Choose the right structure and the right trustees, and they won’t be left with fractions of the wealth you left them.
TAT assists with the creation of a trust structure with proper administration and exemplary executorship, contact us today to create yours and protect your families future wealth.
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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.
