Putting assets into Trusts allows you to protect your wealth and loved ones from a number of threats and ‘what-ifs’. For hundreds of years, Trusts have been used by families to pass on hard-earned wealth to their descendants.
For many centuries, families have utilised trusts to protect their assets and benefit members of their families beyond their lifetimes. When we leave our assets in a trust, we no longer have legal ownership of them. The assets are managed by our trustees, for the benefit of our loved ones.
Here are some benefits of setting up a living trust:-
- Asset protection against claims and creditors (e.g. To protect a family home from the potential failure of a business venture)
- To set aside money for special reasons, such as a child’s education or an elderly parent’s medical expenses
- To ensure our children, and not their partners, keep their inheritances
- To manage the risk of unwanted claims on our estate when we die – such as from a former partner
We can set up a trust at any time during our lifetime. There are many different trust structures we can look at. The most common structure is to have a legal document drawn up saying who the trustees are, who the beneficiaries are, and how the trust is to be run and what assets you are putting into the trust. You then transfer these assets to the trust.
Alternatively, a trust can be created upon your passing under the terms of your will.