A trust may have many benefits, including:
Trusts can be one of the most effective ways to protect assets. For example, by placing assets in a trust for the benefit of a spendthrift or insolvent beneficiary, the beneficiary may be maintained from the trust assets without having control over these assets, and without the trust assets forming part of his/her personal attachable estate.
Trusts are also commonly used in second marriages – a person may want to allow a spouse to have the benefit of using a property while that spouse is still alive, but for that property to ultimately pass to the deceased’s children. A trust can help accomplish this goal.
A trust can assist you in avoiding or minimising Estate Duty Tax, Capital Gains Tax and possibly Transfer Costs (Conveyancing Costs), if your estate and trust are correctly structured and administered.
In most common law jurisdictions, your estate must go through the administration process, which will take some time to finalise and will also involve costs. If your assets are in a trust and your trust is correctly structured and administered, the administration process and related costs will be avoided, as the assets belong to the trust and not to you personally.
A trust can also assist in business continuity, especially a family business.
Contact us for assistance with your trust needs.