Trusts are pivotal in strategic financial planning, providing a secure method for managing assets according to one’s wishes. They are integral for estate planning, retirement planning, and are instrumental in business succession strategies. Use trusts appropriately, and you can gain a greater degree of certainty about the handling of your financial affairs, both for now and in the future.
What is a Trust?
A trust acts like a legally binding safety deposit box for your assets. A trust acts like a legally binding safety deposit box for your assets; be it money, property, or other investments. You give these assets to someone you trust, who takes care of them for the individual or organisation you want to pass on your assets to. This setup is especially useful for making sure your assets are passed on conveniently to loved ones after you pass away. The trust system comprises of three key individuals:
Think of it as a way to give gifts to your loved ones after you’re no longer here, with instructions you’ve set on how and when they receive them. It’s a smart way to keep things organised and make sure your wishes are followed.
Why use a Trust?
Protect your assets: Putting your assets in a trust is like putting them in a safe, insulating them from personal financial risks, such as creditor claims or legal disputes.
Plan your legacy: Trusts ensure your assets go exactly where you want them to go after you’re gone. They are a clear set of instructions that can circumvent the probate process and even ease tax burdens.
You’re in control: You set the rules for the trust, deciding when and how your assets are given out. You can even manage the trust yourself if you wish.
Clear continuity: Trusts keep your assets in the right hands, even if something unexpected happens. They also skip the probate process, so your assets go straight to those you have chosen.
Charitable Giving: You can allocate assets or income to charitable organisations. This not only furthers charitable causes but also provides tax benefits for both the settlor and the charity.
Establishing and managing trusts requires careful planning and legal expertise. We work closely with clients to determine the most appropriate trust type, considering estate size, financial complexity, beneficiary needs, and objectives.