Family Trust

In the movies, TRUSTS are often referred to when young people are living the high life on a Trust Fund that was left to them by their wealthy parents after something tragic happened to them. However, a TRUST is NOT just for the rich. In fact anyone can and should have a TRUST in place to take advantage of the many benefits one can provide.

What is a TRUSTA TRUST is an agreement, binding persons, individuals or a company, spelling out rules that are to be followed by the Trustee’s’ to deal with the ‘property’ (the Estate) in a particular way, for the benefit of one or more chosen ‘beneficiaries’.

  1. Your TRUST Avoids Probate.

Probate, is a process that can take a long time to complete and this causes problems, as you cannot gain access to any of the Estate until it clears. Even if you have a Will, your estate has to go though a probate procedure in the Courts. Having a TRUST removes the need and allows your family to benefit from your estate right away.

  1. You Keep Control.

You keep control of the TRUST in your lifetime! If there is a change that you need to make, you can. You can change terms of use, ages of entitlement; you can cut people out or choose a different charity to leave money to. You have the control; a TRUST states how you want you wealth to be used and by whom after you are gone.

  1. Generation Planning

Having a TRUST not only allows you to let you partner and children enjoy what you leave but, having a TRUST will also pass down the family tree to your grandchildren then to your great grandchildren to enjoy, or at least it will until its all gone! But, with proper management and ‘INVESTING’ you could potentially make it go much further.

  1. Generation Tax.

Another great thing about generation planning is that the TRUST you created and left to your family to enjoy is basically a loan from you. This means that it will not fall into the beneficiary’s estates when they die, meaning their children will not pay Inheritance Tax (IHT).

  1. It Is less Expensive Than You Might Think.

Now, you might be thinking that a TRUST is expensive! Its really not. The cost does vary from professional to professional and from country to country, to the type of TRUST you require and how you want the TRUST to be structured but, the price is worth it! You will save your family thousands, you will save them time, and you will save them from going though the extra trouble of probate and at the same time protect your wealth for years to come enabling you to leave a legacy for your future generations.

  1. Reduce Care Costs.

Are you worried about care cost? Probably not, who thinks about getting ill and not being able to look after themselves! Well, even if we are lucky enough not to get a serious illness in our working life, we all get OLD. However, when this does happen we sometimes become more dependent on others to help us, and often this does not always come free or cheap! Your Estate can be used to pay for care costs; not a nice thought! However, if your Estate is in a TRUST there can be a solution!

  1. Low Maintenance.

Trusts are low maintenance, once they are set up they are set up, depending on how the TRUST is structured nothing may need to happen until you pass away, your assets will just simply fall into the TRUST then pass on to your family.

  1. Young Children. Do you have young children?

If you died and left your 3 year old or 16 year old son all of your wealth, what do you think he would to spend it all on? Having a TRUST allows you to appoint a Trustee, this Trustee can use and allocate the money in the way you determined in the conditions of the TRUST being used to look after your child. Once your child is old enough, for example 21 or 25 years of age then they can have direct access to that Trust Fund and use it to buy a house or start a business of their own.

  1. Eliminate Or Reduce Estate Tax.

Having a TRUST, with the right person setting it up for you, will allow you to reduce and eliminate IHT costs (Inheritance Tax), leaving more for your family.

  1. Marriage After Death.

When you die your spouse or partner after time, may find someone else and eventually re-marry. If you have left your Estate to your spouse or partner and they in turn die before their new partner, their new partner would inherit all of your Estate, that you worked so hard for. If you had children together, they may find that they do not receive anything from your Estate and it may all go to a different family to enjoy. If you had in place a family TRUST your assets would stay within your family and would not ‘fall into the wrong hands’

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To find out more about how a TRUST could help you get in touch and an Adviser will contact you to arrange a call.

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