One of the most effective vehicles to use for asset protection is a trust. Trusts can be a fantastic tool to protect your personal and business assets, while offering substantial tax planning opportunities. We work with you to customise strategies to protect your wealth today and for future generations to come.
By using a trust we can create an effective asset protection plan allows you to:
- Manage your assets more effectively during your lifetime
- Protect your financial interests as well as that of your spouse, children, siblings and other beneficiaries from unforseen risks and liabilities
- Significantly reduce taxes by strategically planning the distribution of income, capital gains and assets to your beneficiaries
- Create a legacy when you’re no longer around and ensure your assets are passed on from one generation to the next without paying taxes and duties
The structure of a trust can vary and there is no ‘one size fits all’. The type of trust depends on many factors. Although the most common type of trust is a family trust.
Outline of a trust:
A trust is simply an agreement whereby a person or company agrees to hold an asset for the benefit of the others. The person who controls the asset is known as the ‘trustee’ and those who benefit are called the ‘beneficiaries’. The assets held in a trust can vary – from property, shares, a business and business premise to works or art and so on. You, the creator of the trust sets out the specific terms as to how you want these assets managed in a document called the “trust deed”.
By transferring or buying assets in a trust, you don’t own the assets in your name. The assets are legally controlled by the trustee. However, you control exactly how they’re managed now and in the future. So regardless of what happens in life, your assets are protected from loss.
The three most common types of trusts are: