Why Create A Trust?
Why Create A Trust?
There are many reasons for wanting to set up a Tax Free Trust. Among them, the following:
Possible Tax Planning
As the settlor does not own the trust assets there would be no liability for tax on those assets. The trustees would be liable for any income and capital gains taxes. Where the trust is established offshore, where there may be low or no liability to tax, a trust makes an attractive possible tax planning vehicle. Detailed tax planning and legal advice should be followed. Please contact us for details.
Family Succession Planning
A settlor may use a trust to provide finances for him or herself, their family or others during his or her lifetime and also post death.
Provide for those who cannot manage their own affairs.
Beneficiaries who are incapacitated, for whatever reason (such as age), may be provided for financially through a trust. These beneficiaries will normally be included in the trust deed and will receive income or capital at the discretion of the trustees.
Specialist advice should be taken where a trust is needed to protect against forced heirs or future creditors. However, treasured assets such as the family home, works of art or shares in the family business can be protected through a trust mechanism.
In today’s world of litigation and high legal costs, professional negligence is a concern for all. Trust planning protects your assets against all such legal attacks.
A Trust can be a useful mechanism for protecting cash and assets in the case of divorce.
To Avoid any problems with Probate
Where assets are held under trust the settlor no longer owns these assets and, therefore, they are outside the estate for probate purposes. This means there would be no probate delays regarding the trust property on the death of the settlor.
Trusts can be set up on the happening of a particular event, such as incapacity or a life-changing event. The trustees will then manage the trust for the benefit of the beneficiaries, ensuring your family is provided for financially.
A Trust is a confidential arrangement between the settlor and the trustees, with minimal or no reporting requirements. In many cases the beneficiaries of the trust are unaware of its very existence under which they have been granted an interest.